Do I need title insurance? That question might have occured to you obtained financing to buy a home or refinance a home. Title insurance cost can run over $1,000 when closing on a mortgage so it’s a good idea to understand why you’re paying this fee.
Title insurance companies usually work clostly with the bank you are obtaining a new home mortgage or refinancing a mortgage with. Title insurance rates can vary depending on the state you live in and the value of your home. Obtaining mortgage title insurance is a must, banks will not proceed with financing without it.
Home title insurance will cover agaisnt defective deeds in the chain of title, defective foreclosures or defective records. Insuring the mortgage holder against a claim. There are a number of title insurance policies offerd, the two most prevalent ones are mortgage policy title insurance and owner’s policy title insurance.
With a mortgage policy the insured is the bank or lending institution. A mortgage policy protects the banks interests, the mortgage loan, in your property.
Owner’s title insurance insures the home is legally vested in the name of the owner, in simpler terms it means they legally own the home. An owner’s policy also insures against any of the defective chain of title we mentioned above.
Author: Jason P. Jones
June 21st, 2009
