Title Insurance Reissue Rates

title insuranceWe recently sold our old house. We had, some 15 months prior, streamlined the mortgage we had with Chase even though we knew we’d be selling the following year. As when we refinanced our current house, it was a total no brainer. It cost us nothing. (We actually made money on the refi.) And both saved/continue to save us money every month. Yes – the paperwork was a bit of a pain. But, big deal, most things that lead to improvement and/or savings are a pain!

I just discovered an additional bonus to the streamline and refinancing processes. It can qualify you for a “reissue” rate when you go to sell your house. In the case of our old house, our title insurance policy only cost $829, about half what I expected, because they were able to piggyback on the title policy that was issued 15 months earlier when we did the streamline. Hence, the name “reissue”.

Policies vary among title companies. Some will give reissue rates for five years, although the discount decreases each year. We refinanced our current house in February. That means, we may be eligible for a reissue rate if we sell within five years from then. It won’t affect our planning. But it’s something to keep in mind. And, of course, if rates go down again (HIGHLY unlikely) and we refinance again, the clock will start ticking anew.

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