Each time you refinance the loan is different, different interest rates, different loan amounts, and even different lenders. A separate policy is needed by the lender insuring the validity of your mortgage when it is made.

For as long as you own the property your mortgage is valid, bit is doesn't insure the new mortgage created when you refinance, and it doesn't provide protection against events that may have transpired between the time you purchased the property and when it is refinanced.

For example, you may have taken out a second mortgage on the home that could threaten the priority of the new lender's mortgage. Or, there could be legal judgments against you or a mechanic's lien against the property by a supplier who wasn't paid for home improvements.

Lenders also insist on a new title policy because many mortgages are packaged as securities and sold to investors in the secondary mortgage market. Title insurance is the only practical way to provide the assurance that investors demand and ensure that the mortgages backing these securities are valid and enforceable.

For your refinance transaction with Cherokee Title Insurance Company, you may qualify for a special title insurance rate based on the loan amount. There may be additional charges for recording fees, closing fees and endorsements. Your lender can provide you with an estimate of these costs.

How to prepare for your refinancing closing

Once you have made the decision to refinance your home you'll want your transaction to progress as smoothly as possible. In an effort to avoid potential problems and delays, consider the following points. Check with us to determine which apply to you.

1. Bring a Cashier's or Certified check to the closing for the amounts you must pay, not a personal check
2. Bring an original Homeowners Insurance Policy to the closing along with a paid receipt for the year's first premium. I you're refinancing a condo, bring a Certificate of Insurance instead.
3. Before the closing, contact your lender regarding any additional requirements that must be satisfied PRIOR to closing.
4. Bring personal identification that includes your picture and signature to the closing.
5. If you are going to be paying off credit card balances at the closing, the most current statement should be brought to the closing.
6. If your property is a condo, bring an assessment letter from your condo association or property management company to the closing.
7. If your transaction requires a Notice of Right to Cancel, disbursement may be delayed the day of the closing.

Used with permission of Chicago Title Insurance Company, Copyright December 1993.