- November 20, 2017
Mortgage lenders require borrowers to buy title insurance that protects the bank for the full amount of the mortgage in case of title problems. An “owners” title policy protects the owner’s equity. Premiums are set by the insurance department and are dependent on the amount of coverage required. It is paid only once at closing however, upon refinancing, the new lender will again require a new mortgagee policy. Discounts for the new mortgagee policy at refinance may be available, depending when the original title insurance policy was issued.