I have noticed that many homeowners here in Elizabethtown and Mount Joy have been refinancing their mortgages to take advantage of low interest rates. Refinancing your mortgage will require changes to your homeowners insurance policy.

It is common for the lender to require a copy of your home insurance policy with revised mortgagee clause and a paid receipt.  Thome Insurance Agency will provide this at no charge to you.

This week an issue came up with a refi through Wells Fargo Bank.  My insured was scheduled to close on their refi with Wells Fargo Bank on April 25th the last day of their rate lock period.  I provided a copy of the current homeowners insurance policy with revised mortgagee clause and paid receipt showing policy paid in full until the end of the policy period, June 6th.  Wells Fargo is requiring a copy of the renewal policy and paid receipt for the coming year.  However, the insurance carrier has not issued the renewal policy or renewal premium yet!  It is impossible to pay a bill that has not been issued.

Wells Fargo is threatening to delay settlement because an invoice for the coming year which has not been issued is not paid.  I hope reason will prevail.

Just one more thing to consider if you plan to refinance too.