Yes, you will almost certainly pay for title insurance when you refinance, but only for one of the two policies. Your new lender requires a new lender’s policy. You generally do not need a new owner’s policy, because the one you bought at purchase stays in force. Depending on your state and how recently you bought, you may also qualify for a discounted “reissue” rate.
This guide explains what the policy does, what it costs, where to find the charge on your paperwork and how to make sure you are not overpaying.
TL;DR
- A refinance creates a new loan, so the lender requires a new lender’s title insurance policy, even if you stay with your current lender.
- Your original owner’s policy generally stays valid for as long as you or your heirs hold an interest in the property. You usually do not buy it again.
- The premium is a one-time charge at closing, not a recurring bill like homeowners insurance.
- Many states offer a reissue or refinance discount when you refinance within a set number of years of your last title policy. Ask for it by name, because it is not always applied automatically.
- Check the total title cost on your Loan Estimate and Closing Disclosure rather than comparing individual line items.
Table of Contents
- Why a refinance needs title insurance
- What title insurance costs on a refinance
- How to get the reissue discount
- Where title costs show up on your paperwork
- Beware of “no-cost” refinances
- Our perspective: treat title as a line item you can question
- Estimate your savings before you pay for anything
- A quick checklist before your closing
- FAQ
- Sources
Why a refinance needs title insurance
To a lender, a refinance is a new loan. The old mortgage is paid off and a new one takes its place, secured by the same house. The lender’s policy from your original purchase only covered the life of the previous loan, so it ended when that loan was paid.
The new lender wants its own protection. Between your purchase and today, something could have attached to the property: a contractor’s lien, an unpaid tax, a judgment, an easement or an error in the public record. A fresh title search looks for those problems, and the new lender’s policy protects the lender’s security interest in the new loan if one turns up.
The Freddie Mac refinancing FAQ states that title insurance is required for all loans, though whether you need a reissued policy when refinancing varies by lender and state. In practice, expect a new lender’s policy on every refinance, including when you stay with your current servicer.
Lender’s policy vs. owner’s policy
These are two different products with different beneficiaries.
| Lender’s policy | Owner’s policy | |
|---|---|---|
| Who it protects | The lender | You, the homeowner |
| Coverage amount | The loan amount | Usually the purchase price |
| Required on a refinance? | Yes | No, your original one remains |
| How long it lasts | Until the loan is paid off | As long as you or your heirs have an interest in the property |
| Who typically pays on a refinance | You, as part of closing costs | Already paid at purchase |
The National Association of Insurance Commissioners consumer guide describes this split: the lender’s policy is mandatory in a refinance, and the owner’s policy stays valid for the duration of your ownership.
One point of confusion is worth clearing up. Title insurance is not an annual premium. You pay once at closing, and the coverage is long-term. If a charge for title insurance ever shows up as a recurring bill, ask what it is.
What the lender’s policy does not do
The lender’s policy protects the lender, not you. If a title defect surfaced after your refinance, the lender’s policy would not compensate you for your own loss of equity. That is the job of the owner’s policy you bought when you purchased. If you never bought one, or you inherited or were gifted the home, ask a real estate attorney or your title company whether an owner’s policy is worth buying now. That decision depends on your state and your situation.
What title insurance costs on a refinance
There is no single national price. Title premiums are shaped by state rules, the underwriter and the loan amount. A commonly cited benchmark comes from the American Land Title Association: a new lender’s policy on a refinance runs closer to 0.5% of the loan balance, according to an ALTA spokesperson quoted by ValuePenguin. Treat that as a rough guide, not a quote.
Here is what that benchmark would look like on a few loan balances. These are illustrations of the arithmetic, not prices from any title company.
| New loan amount | Illustrative premium at 0.5% |
|---|---|
| $200,000 | $1,000 |
| $350,000 | $1,750 |
| $500,000 | $2,500 |
Your actual premium could be lower or higher. In some states, rates are set by a state filing or regulator, and in others title companies set their own within limits. The Texas Office of Public Insurance Counsel explains that eligibility and discount amounts depend on state rules and the title company’s policies, and Texas is a state where premium rates are set by regulation.
What else is bundled into “title costs”
The premium is only one piece. Title-related charges on a refinance can include:
- Title search and examination
- Settlement or closing agent fee
- Closing protection letter fee
- Endorsement fees
- Recording fees
- Notary, courier and wire fees
Some of these are charged by the title company and some by the county. Because it is also the case that sellers and buyers see these itemized differently across states, a state-specific example can help you picture how premiums sit among other closing costs. For instance, a Florida closing cost breakdown that covers title insurance shows how one state lists these charges. Your own state will differ, so rely on your Loan Estimate for your numbers.
How to get the reissue discount
This is the most useful money-saving step on the page.
Because a title search was done relatively recently, many states and underwriters allow a reduced premium on the lender’s policy if you refinance within a certain window of your last title policy. According to Texas’s Office of Public Insurance Counsel and related consumer material, windows such as seven or ten years appear in some jurisdictions, while others use different periods or none at all. The discount amount and the window depend on your state and the title company.
The system is starting to catch up. Freddie Mac added a message to its Loan Product Advisor that flags potential eligibility. The May 2025 release notes describe a new title reissue message, effective May 11, meant to help lenders reduce costs for borrowers. The companion feedback message list says reissue rates may be available based on state and date of initial purchase, and can be requested from the title insurance provider.
That last phrase matters. A message is not a discount. Someone has to request it.
Steps to claim it
- Find your purchase date. Your closing statement or deed will show when you bought, which is the date most reissue rules key off.
- Locate your old owner’s policy. If you can find a copy, give it to your lender or title agent. Some underwriters need it to apply the discount.
- Ask directly. Say: “Is the reissue rate or refinance rate applied to my lender’s policy?” If the answer is unclear, ask to see the title commitment and how the premium was calculated.
- Compare the total. A lower premium line is only a win if other title fees did not rise to offset it.
If you bought long ago or in a state without a reissue schedule, the discount may not apply. It costs nothing to ask.
Where title costs show up on your paperwork
Within three business days of your application, your lender must give you a Loan Estimate. The CFPB’s guide to the Loan Estimate explains that title services you can shop for are listed in Section C, and that you have the right to shop for some, but not all, of these services in many cases. Whether you can shop depends on whether the lender requires a specific provider.
Two practical tips:
- Compare bottom lines. If a title company sends its own fee sheet and it looks different from your Loan Estimate, that is not necessarily an overcharge. State laws often dictate how fees are presented. The CFPB’s Your Home Loan Toolkit (Spanish edition) advises that the totals should match, so add up every title-related item and compare that sum to the Loan Estimate or Closing Disclosure.
- Read the Closing Disclosure early. Compare it to your Loan Estimate before closing day, not at the table. Ask about any title charge that increased.
Beware of “no-cost” refinances
Title insurance is part of closing costs, and closing costs do not disappear in a “no-cost” refinance. They move. Freddie Mac’s consumer guidance warns that such offers can roll costs into the loan balance or raise the interest rate, which can cost more over time. Compare the APR and total loan costs, not just the headline rate.
Our perspective: treat title as a line item you can question
Most borrowers focus on the interest rate and treat title charges as fixed. We see it differently. Title is a real cost, usually one of the larger third-party fees on a refinance, and it is one of the few that may be negotiable through the reissue discount or by shopping where your lender allows.
When we compare refinance offers for clients, we look at the full picture: rate, APR, lender fees and third-party costs, including title. A quote with a slightly lower rate and a heavier closing cost list can lose to a quote with a slightly higher rate when you plan to stay in the home only a few years. That is why we pair rate comparison with a break-even calculation and why our process starts with a personal consultation, not a one-size rate sheet.
Our fully online application is built so you can see your costs early, ask questions while there is still time to act and keep communication in one place. If a reissue rate might apply, we want that question asked before closing, not after.
— David Mordue
Estimate your savings before you pay for anything
The point of a refinance is a lower monthly cost or a better loan structure. Title and other closing costs are what you pay to get there, so the question is how long it takes to earn them back.
Try the refinance calculator to compare your current payment with a new one and see your break-even point. If you are ready to see real options, you can check current rates and start a refinance online. Our process is fully online and can lead to funding in under 21 days. We also work with other loan types, including FHA loans, VA loans and adjustable-rate mortgages, if a change of loan type is part of your plan. Considering a shorter term? See our page on the 15-year fixed-rate mortgage.
A quick checklist before your closing
- Confirm your state and the date of your last title policy.
- Ask whether a reissue or refinance rate applies, and by how much.
- Locate your original owner’s policy and share it if requested.
- Review Section C of your Loan Estimate for title services you may shop for.
- Add up all title-related costs and compare them to the Closing Disclosure total.
- Ask whether you have an owner’s policy, and speak with a real estate attorney if you do not.
- Compare APR, not only the interest rate.
FAQ
Is title insurance required for a refinance?
In practice, yes. Lenders require a lender’s title policy on the new loan, and Freddie Mac states that title insurance is required for all loans. Whether you need a reissued policy depends on your lender and state, so confirm with your lender.
Do I need a new owner’s policy when I refinance?
Generally no. Your original owner’s policy remains in effect as long as you or your heirs hold an interest in the property. If you never purchased one, talk to a real estate attorney or title company about whether it makes sense in your state.
Can I use my current lender to avoid title insurance?
No. Even with the same lender, the new loan is a new security interest, which calls for a fresh title search and a new lender’s policy. What staying put might change is the price, since some title companies and states offer discounts, so ask.
How much is title insurance on a refinance?
It varies by state, underwriter and loan size. One industry benchmark, from an ALTA representative, puts the lender’s policy near 0.5% of the loan balance, so about $1,750 on a $350,000 loan before any reissue discount. Your Loan Estimate shows the actual figure.
Can I shop around for title insurance on a refinance?
Often you can for some services. Title services you may shop for appear in Section C of your Loan Estimate. If your lender requires a specific provider, those fees are listed elsewhere, so check how your estimate is arranged.
Sources
- Consumer Guide to Title Insurance, NAIC
- Why Lenders Require Title Insurance When Refinancing Your Home, CLTA
- Title Insurance: The Basics, Texas Office of Public Insurance Counsel
- Refinancing Your Mortgage: Frequently Asked Questions, Freddie Mac
- Loan Product Advisor release notes, May 2025, Freddie Mac
- Loan Product Advisor feedback messages, May 2025, Freddie Mac
- Loan Estimate guide, CFPB
- Your Home Loan Toolkit (Spanish), CFPB
- How Much Does Title Insurance Cost, ValuePenguin