Frequently Asked Questions About Title Insurance

Why do I have to pay title insurance?

Your home is our ultimate security when making this mortgage, so we need to protect it from anyone but you and us having an ownership claim or lien. Every lender requires title insurance; we only require the amount based upon your loan amount.

Do I have to pay for title insurance when I refinance?

Yes. When you refinance, you're getting a new loan and, in most cases, you're basically starting from scratch.

However, you pay less for title insurance with a refinance loan because you only need to buy the lender's title insurance policy. The owner's policy that you bought when purchasing your home covers you until you sell your home.

How much will the title insurance be?

Title insurance varies from state to state and county to county. The owner's title insurance policy is based on the home's purchase price, usually between 0.3% and 0.6%. The lender's title insurance is based on the loan amount, usually between 0.2% and 0.5%.

Homeowners Mortgage only requires that you take a lender's policy to cover the amount of our new mortgage. You may wish to purchase additional coverage, but we do not require this. Your title insurance firm, escrow or closing attorney can help you make this decision.

We try to estimate your title insurance as accurately as possible in our closing cost calculators and Good Faith Estimates but you need to check with your title insurance firm for an exact amount. Rates can vary greatly from area to area.

Can I choose the title insurance company?

In many Southeastern states, your closing attorney will make this selection for you.