According to Credible Operations Inc., refinancing rates have historically been at an all time low of under 3% throughout 2020 and 2021. You might have found yourself talking with your significant other about refinancing your home in order to have a cheaper monthly mortgage payment with a lower interest rate. Title companies play an incredibly important role throughout the home refinancing process. While title companies can confirm your ownership role of your house to lenders, that’s not all that a title company contributes during the refinancing process. Title companies can also provide homeowners with title insurance and owner’s title insurance to protect the buyer upon their original closing.
What is Home Refinancing?
Refinancing your home is the process of coordinating with lenders and a title company to reduce your monthly mortgage payments and interest rate. You should consider refinancing if you’re experiencing financial hardship, your credit score is higher, or even if you simply want to cash in on lower interest rates. By refinancing your home, you are essentially obtaining a second loan to pay off your original mortgage payment through transferring the loan directly to your original lender. By doing so, you can reduce your monthly mortgage payment and interest rates.
Will I Receive a New Title on My Home?
Usually, homeowners will not be issued a new title upon the completion of a home refinancing. Title companies play a specific role in providing lenders with the correct homeowner information to ensure that you are the current owner of your property. If you’ve already invested in owner’s title insurance and title insurance to protect your home, this credit will be transferred while you refinance and still apply.
Do I Pay Title Insurance While Refinancing?
Yes, you will still pay for your title insurance when you refinance. This one-time fee will occur at closing during the refinance process. Title insurance protects the lender, while owner’s title insurance protects the homebuyer. You can reach out to Colony Title or read our blog to learn about the differences between owner’s title insurance and lender’s title insurance. We are here to help you navigate the complexities of homeownership and the home buying process.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.