How to Save Money on Refinance Title Insurance in Texas

The basics: when you refinance, you need a new Loan Policy

Your existing owner's title insurance policy survives a refinance — you bought it once, it covers you forever. But your new lender will require its own Loan Policy, separate from any prior policy.

The good news: Texas Rate Rule R-8 gives you a significant discount on that new Loan Policy if you previously had an owner's policy on the property within the last seven years.

How much can you save?

The discount is tiered by the age of your prior owner's policy:

Age of prior owner's policy	R-8 credit
Less than 3 years	50%
3 to 4 years	45%
4 to 5 years	40%
5 to 6 years	35%
6 to 7 years	25%
More than 7 years	No credit

Real-world numbers

Let's say you bought a $350,000 home three years ago and are refinancing today with a $280,000 loan.

• Full Loan Policy premium on $280,000: approximately $1,530
• With 50% R-8 credit: approximately $765
• Your savings: $765

On a larger refinance the savings can easily exceed $1,500. For a bigger home or cash-out refi over $1M, the credit can be worth $2,500 or more.

What you need to claim the credit

The title company needs documentation that you actually had an owner's policy. The acceptable documentation:

1. A copy of your prior owner's title policy. This is the most common — if you still have it from your original closing, you're set.
2. A copy of your prior loan policy. If you can find the loan policy but not the owner's policy, that often works for the R-8 credit.
3. A request for a duplicate policy. If you can't find either, the original title company can typically provide a duplicate. Ask.

If your prior closing was with SentryTitle, we have your policy on file. We will pull it automatically at refinance — no action needed from you.

What if you lost your policy?

This is common and not a crisis. Contact the title company that handled your original purchase. They maintain policy archives and can provide a duplicate, typically for a small fee or free. Do this before your refinance closing — waiting until the day of closing means you may lose the credit.

If the original title company no longer exists (rare but possible), contact the underwriter whose name appears on your HUD-1 or Closing Disclosure. Most major underwriters — Fidelity National Title, Old Republic, Stewart, First American — maintain centralized policy archives.

What if your home value has gone up?

A common question: "My home was worth $250,000 when I bought it. Now it's worth $400,000 and I want to cash-out refinance for $320,000. How does the reissue credit apply?"

The R-8 credit applies to the portion of your new loan amount up to the amount of your original owner's policy. So in the example above:

• Your original policy was $250,000.
• Your new loan is $320,000.
• You get the R-8 credit on the first $250,000 of your new loan.
• You pay full rate on the portion above $250,000 ($70,000).

Still a significant savings. Our rate calculator handles this math automatically if you select the "Refinance" tab and indicate you have a prior policy.

Common mistakes

• Forgetting to mention the prior policy. Tell your escrow officer at the start of your refinance. Some title companies will not proactively ask.
• Choosing a new title company. If your original title company handled the purchase and has your policy on file, using them again makes the R-8 credit automatic.
• Closing too late. If your prior policy is about to cross a discount threshold (3 years, 5 years, 7 years), timing your closing even a few days earlier can lock in a better rate.

Texas home equity loans (R-9)

If you are taking out a home equity loan (not a refinance of your original mortgage), Texas has a separate rate rule (R-9) that applies. The math is different and the credit structure is different. Talk to your title company about which rule applies to your specific transaction.

One more thing

The R-8 reissue credit is a Texas-specific benefit that some out-of-state lenders and national title chains overlook. Our team catches it every time, because it is simply our job to. Get a refinance quote or call (210) 555-1656.