Many homeowners wonder if they need new title insurance when refinancing. The short answer: your lender will require a new policy. Here's what you should know about title insurance and refinances.
Refinancing: The Title Question You Should Ask Your Lender
When you refinance your mortgage, two questions always come up:
- Does my lender require new title insurance?
- Do I need new owner's title insurance?
Short answers: yes and probably not — but let's walk through why.
Lender's Title Insurance Is Required (Almost Always)
When you refinance, your new lender is extending you a new loan. They want protection for their new lien position, just like your original lender did.
Here's the important distinction: lender's title insurance protects the lender, not you. The original lender's policy does not transfer to the new lender. The new lender gets a new policy.
This is why you pay for lender's title insurance again when you refinance. It's for a new loan with a new lender.
Do You Need New Owner's Title Insurance?
Probably not.
The owner's title insurance you purchased when you originally bought the home covers your ownership interest in perpetuity — as long as you own the property. It doesn't expire. It doesn't reset when you refinance.
The exception: if you originally bought without owner's title insurance (possible in Virginia, Maryland, and DC), a refinance is an opportunity to add it.
The Reissue Rate — A Discount Worth Asking About
When a title company handles a refinance, they can often issue the lender's policy at a reissue rate if the original purchase was within a certain number of years (typically 10).
The reissue rate is a significant discount — often 30–40% off the standard premium. Ask specifically: "Can you issue at the reissue rate, and what do you need from me to do that?"
What the Title Search Covers on a Refinance
Even on a refinance, the title company performs a title search — typically focused on what's happened since the original closing:
- Any new liens filed against the property (tax liens, judgment liens, mechanic's liens)
- Any recorded instruments that might affect the title
- Whether property taxes are current
This is also why title issues can be discovered on a refinance even if you've owned the property for years. A judgment entered against you personally after you purchased the home attaches to your real property.
Closing Costs on a Refinance
On a refinance, closing costs are lower than a purchase — no owner's title insurance, no transfer taxes, no real estate commission. But lender's title insurance and settlement fees are real line items.
On a $500,000 refinance, expect:
- Lender's title insurance: $600–$1,200 (at reissue rate, lower)
- Settlement/closing fee: $350–$750
- Title search: $150–$400
- Recording fees: $25–$75
These costs factor into your break-even analysis. If you're saving $200/month in interest but closing costs total $5,000, your break-even is 25 months. Make sure the math works.
Working Through a Refi Closing
The actual refinance closing is simpler than a purchase closing — typically just you, the loan documents, and the settlement agent.
In Virginia and Maryland, an attorney doesn't need to be present. In DC, attorney oversight is required.
Your title company coordinates with the new lender, manages document signing, records the new deed of trust, and arranges payoff of the old loan. The timeline from application to closing is typically 30–45 days.
Questions about your specific refinance situation? Call DMV Title Guy — we process refinance closings across all three jurisdictions.
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Pruitt Title serves buyers, sellers, and lenders across Virginia, Maryland, and Washington, DC. We make closing simple.
