The charge for title insurance on refinance transactions has the potential to be deeply discounted. On purchases, the title company performs an extensive search on the property to protect the lender and buyer against any pre-existing problems (called a “full search” which typically searches back 60 or 100 years). On refinances, the period of time covered by the search can be greatly reduced, based on the length of time since the last title insurance policy was issued. As a result, underwriters have authorized the use of discounted ‘reissue’ or ‘refinance’ rates to reduce costs to potential borrowers. Typically, the reissue or refinance rate is only available within a certain amount of time. While each state determines its own limit (anywhere from two to fifteen years) the discount most often expires after ten years. The availability of these discounts varies by state and each underwriter may have a different set of requirements that must be met in order to provide the discount.
The reissue rate in Pennsylvania, for instance, is automatically applied on every refinance transaction. Other states’ reduced rates require some physical evidence of the prior policy. Click the button below for an appendix outlining the stipulations our underwriters will require on a state-by-state basis in order to provide the reissue or refinance rates.
Avenue 365 discloses to the consumer via letter or email, on every refinance transaction, that they may be eligible for a reduced or discounted rated based upon the date of their prior title policy. Depending on their state they may need to provide us with certain documentation in order for us to be able to apply that discounted rate. Our initial Welcome Letter to the consumer instructs them to call our Customer Service department or consult our website for instructions on what they may need in order to satisfy the “evidence requirements” (if any) for each state. However we will always apply the lowest rate allowed by law based upon the date of the previous title policy which is revealed by our title search. The only borrower participation that we need is in supplying the evidence requirements in their state. They will not need to request the lowest rate, we will apply it as per their eligibility.