TITLE INSURANCE

The lender has taken on a majority stake in loaning you monies, so they want protection from any title dispute that might arise in the future and any lien that affects property ownership in case of foreclosure.  Cost of Title Insurance varies from every county and state

There are two Title Insurance policies written at loan conception.  The Owner’s Title policy is based on the purchase price and the Lender’s Title policy is based on the loan amount.  An Owner’s Title policy costs between .3% and .6% of the purchase price and the Lender’s Title policy costs between .2% and .4% of the loan amount.

Lenders require a Lenders title policy, but depending on where you live, you may also be responsible to pay for this title search which is performed by a attorney in some states and title insurance companies in other states.  To protect your property from others that pray on uninsured property, you are well advised to obtain an Owner’s Title policy. 

If your refinance your home, you’ll obtain a new loan and most likely with a new lenders, so basically you are starting from scratch