June 23, 2020
Agency
Refinancing your home mortgage
Have you or are you currently refinancing your home mortgage?
It seems as though everyone and their Mother are taking advantage of the lower interest rates and refinancing their home loans. Here is a quick review of some items to keep in mind as it pertains to your home insurance and lender.
1. If you have an actual agent, when completing the insurance information make sure you direct the lender to the agent’s office. Having your agent prepare the refinance insurance documents provides that front line service to make sure everything gets processed correctly.
2. When refinancing your home, please remember that your home policy’s dwelling coverage may be different than the County’s Assessed value, the appraisal value, and the value of the loan. Most of the time that is ok, but call your agent or me if you have questions.
3. There are specific laws in place that prohibit Lenders from requiring Insurance too far above the replacement cost so beware of any over-insurance requirements.
4. If your new loan will NOT be responsible for the home insurance premiums, you will need to contact your insurance agent or company to set up a new billing account.
Final thought. If you have refinanced or your loan has been transferred to a new provider, these changes do not automatically occur on your home policy, so make sure your home policy reflects the correct lender or lenders! This burden unfortunately does fall on you, the homeowner and consumer!
Lender information is typically listed first and foremost on your home policy, so dig it out and make sure it is correct.
If you have any questions, do not hesitate to contact us.
Source: Gretchen’s Weekly Wednesday Insurance Tip