The Closing Itself
Refinance Title Work vs. a Purchase Closing in Florida
Direct answer
A Florida refinance is not a purchase. There is no seller, no earnest money, and usually no new deed. You already own the house. You sign a new mortgage, the old loan is paid off, and the new lender gets its own title policy after a new search. The old lender's policy ends with the old loan. An owner's policy, if you have one, generally stays in force and does not insure the new lender. A typical refinance takes 21 to 30 days. The Closing Disclosure is due at least three business days before you sign. When the loan is secured by your principal dwelling, a separate right to cancel can run until midnight of the third business day after you sign, receive the disclosures, and receive the rescission notice, and the lender usually does not fund until that period ends. A purchase that finances the house is not that right. On a refinance we close, we record the mortgage after the lender funds.
Key takeaways
- There is no seller, no earnest money, and usually no new deed. You sign a new mortgage and the old loan is paid off.
- The old lender's policy cannot cover the new loan. A new search and a new lender's policy are required.
- The Closing Disclosure is three business days before signing. The right to cancel, when it applies, is three business days after signing.
- A homestead spouse generally joins a mortgage of the permanent residence even if that spouse is not on the note.
- If there is no new deed, there is no deed stamp tax. Any mortgage stamp tax is quoted on the file.
What is different about a refinance closing?
You already own the house. A purchase needs a seller, a deed to the buyer, and earnest money. A refinance needs a new mortgage, a payoff of the old loan, and a new lender's title policy. Keys do not change hands. A new deed is included only when someone is being added or removed.
A typical refinance takes 21 to 30 days. Appraisal, underwriting, and the Closing Disclosure drive that range. Read how long a Florida closing takes. We do not publish a tighter window. The closing services on a refinance are the new lender's documents, the payoff, and a lender's policy when the loan requires one.
| Purchase | Refinance | |
|---|---|---|
| Who signs | Buyer and seller. A homestead spouse joins if someone still lives there | The owner. A homestead spouse joins a mortgage of the permanent residence |
| Deed | A new deed to the buyer | Usually none, unless someone is added or removed |
| Money in | Earnest money, then the buyer's funds and the loan | The new loan pays off the old loan. No earnest money |
| Title policy | Often an owner's policy and a lender's policy | A new lender's policy. An existing owner's policy stays in force |
| Before you sign | Closing Disclosure at least three business days before a loan signing | The same Closing Disclosure rule |
| After you sign | A purchase that finances the house is not the right to cancel | On a principal dwelling, three business days to cancel can run, and funding waits |
| What we record | The deed after funding | The mortgage after the lender funds, plus a deed only if this closing includes one |
Does a refinance need a new title policy?
Yes. The new lender needs its own lender's title policy. The old lender's policy insured the old loan. It ends when that loan is paid off, and it cannot be handed to the new bank. If you bought an owner's policy, it generally stays in force for the ownership you already have. It does not insure the new lender, and a refinance does not automatically issue a new owner's policy.
The file still needs a new title search. A judgment, a tax lien, or a construction lien can be recorded after the purchase. Ordering the payoff of the open mortgage is part of clearing the file. A current statement tells us where to send the request. It is not the payoff figure.
Florida reissue and substitution-loan rates can lower the new lender's premium when a prior owner's policy is in the file. The schedules are in whether you can reuse an old title policy. This article does not reprint them. The low simultaneous-issue lender's premium used on many purchases applies when an owner's policy and a lender's policy are issued together. A typical refinance issues only the new lender's policy. The borrower usually pays, because there is no seller. Search and closing fees are separate from the premium.
No seller
You already own the house. There is no earnest money and no key handoff.
New policy
The old lender's policy ends. The new bank needs its own after a new search.
21–30 days
Appraisal, underwriting, and the Closing Disclosure drive that range.
Which three-day clock applies, the disclosure or the right to cancel?
They are different clocks. The Closing Disclosure comes before you sign. On most loans, the lender delivers it so you receive it at least three business days before consummation. We do not issue that form. Read what a Closing Disclosure is.
The right to cancel comes after you sign, and only on some loans. Under 12 CFR 1026.23, when the loan will be secured by your principal dwelling, you may rescind until midnight of the third business day after the last of three events: you sign, you receive the material disclosures, and you receive the notice of the right to rescind. If more than one person has that right, one person's cancellation is effective for all of them. A vacation home or second home that is not currently your principal dwelling is not that right. You can have only one principal dwelling.
A loan to buy or build the principal dwelling is exempt. A refinance with a new lender, secured by the principal dwelling, generally is not. A refinance by the same creditor, of a loan already secured by that dwelling, is exempt except for new money. The right then applies only to the extent the new amount financed exceeds the unpaid principal balance, any earned unpaid finance charge, and amounts attributed solely to the costs of the refinance. We do not decide which exemption fits. We follow the lender's funding instruction.
Until the period ends, and the lender is reasonably satisfied that you have not canceled, the lender does not disburse the loan proceeds except into a valid escrow. A waiver is narrow. It takes a dated written statement, signed by every person who can cancel, describing a bona fide personal financial emergency. A printed form is not that statement. We do not write the waiver.
Who signs a refinance, and what gets recorded?
The owners sign the new mortgage. We sign it with two witnesses and a notary. If the house is your permanent residence, a spouse generally joins the mortgage even when that spouse is not on the note. Read why both spouses sign.
Most refinances do not include a new deed. A deed is part of the file when someone is added or removed, such as adding a spouse, a deed after divorce, or a deed into a trust. If this closing includes a deed, we record it with the mortgage after the lender funds.
If there is no new deed, there is no deed documentary stamp tax. The mortgage can still have its own documentary stamp tax. We quote that tax on the file. We do not publish a mortgage stamp rate here. The deed rules are in documentary stamp tax on a deed. An association estoppel is ordered only when the lender or the file requires it. Once the association receives the request, the 10-business-day clock in the estoppel article applies. Confirm wiring instructions by calling (352) 792-1214, not by using a number from an email.
Open the refinance file
Send the loan amount, the lender, a current mortgage statement, and a copy of the old owner's policy if you have one.
Search the title and order the payoff
The search looks for liens recorded after the last closing. The payoff letter is the amount, not an old coupon.
Review the Closing Disclosure
The lender delivers it so you receive it at least three business days before you sign.
Sign the mortgage
Two witnesses and a notary. A homestead spouse joins a mortgage of the permanent residence.
Fund, then record
We record the mortgage after the lender funds. Funding can wait until a right to cancel ends. A deed records only if this closing includes one.
Frequently asked questions
Do I need a new title search to refinance a Florida house?
Yes. The last search stopped on the last closing date. The new lender needs a current search and its own lender's policy. An old statement is not a payoff letter.
Can the new bank use my old lender's title policy?
No. That policy insured the old loan and ends when the loan is paid off. Your owner's policy, if you have one, generally stays in force and can qualify the new premium for a lower promulgated rate. The rate schedules are in reusing a title policy on a refinance.
Is the three-day Closing Disclosure the same as the three-day right to cancel?
No. The Closing Disclosure is at least three business days before you sign. The right to cancel, when the loan is secured by your principal dwelling, runs until midnight of the third business day after the last of signing, the material disclosures, and the rescission notice. The lender usually does not fund until that period ends.
Does a refinance of a second home have a right to cancel?
Not under 12 CFR 1026.23 if the house is not currently your principal dwelling. A purchase that finances your principal dwelling is also exempt. A refinance with a new lender, secured by the principal dwelling, generally is not. We follow the lender's instruction. We do not decide the exemption.
Does my spouse have to sign if they are not on the new loan?
If the house is your permanent residence, a spouse generally joins the mortgage even when that spouse is not on the note. Read why both spouses sign. We sign the mortgage with two witnesses and a notary.
Is there deed stamp tax on a refinance with no new deed?
No. Deed documentary stamp tax follows a deed. A refinance with no new deed does not have that tax. The mortgage can still have its own documentary stamp tax, which we quote on the file. We do not publish a mortgage rate in this article.
Who records the mortgage?
On a refinance we close, we record the mortgage after the lender funds, in the county where the land sits. If the closing also includes a deed, we record that deed with it. A quitclaim we only prepare, with no loan closing, is recorded by the client. Call (352) 792-1214 or contact us. The office is at 3087 Anderson Snow Road, Spring Hill, FL 34609.