Two kinds of policy
An owner's title policy protects you and is usually bought once, when you purchase. A lender's policy protects the lender and is tied to a specific loan. When you refinance, the new lender needs its own policy because the old one covered the old loan.
What the policy covers
Title insurance covers losses from defects in title that existed before the policy date, such as forged documents, unknown liens or recording errors. The title company searches public records before issuing the policy.
Why lenders require a new lender's title policy on a refinance, and how reissue discounts may lower the cost.
Reissue or refinance rates
Many states and title insurers offer reduced premiums when a recent policy exists on the same property. Eligibility often depends on how long ago the prior policy was issued. Ask the title or settlement agent whether a reissue rate applies, and provide your prior owner's policy.
Where it appears
Title charges appear in Section B or C of the Loan Estimate, depending on whether you can shop for the provider. If you can shop, compare quotes from more than one title company.
Endorsements
Lenders may require endorsements that add coverage for specific risks, such as condominium or planned unit development issues. Each has a cost.
Questions to ask
Is a reissue discount available? Which endorsements are required? Can I choose my own title company? What is the settlement fee? Asking these questions early can reduce costs without affecting your loan terms.
Sources
Sources checked 10/23/2026. General education only; confirm current rules with official sources and a licensed lender.