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Old 04-18-2009, 12:53 PM
 
15 posts, read 44,400 times
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We are first-time home buyers in Kings County, Brooklyn, NY. Since we are getting a mortgage, we understand that we will need to get separate title insurance policies for the mortgage amount (for the bank) and for the full house value (for us). Also, we want to make sure that we are covered for the market value in the future if there is a title issue. Does this mean that we need to get three separate policies ("Mortgage", "Fee/Owner" and "Simultaneous Issue and market Value Rider Endorsement")? Or is it supposed to be just 2 policies: "Mortgage" and "Simultaneous Issue and Market Value Rider Endorsement"? We are not sure whether "Simultaneous Issue and Market Value Rider Endorsement" policy includes owner insurance.

We are using the following link to estimate the potential policy rates: New York State Title Insurance Rate Calculator (http://www.smprtitle.com/title_insurance_rate_calculator.aspx - broken link).

Any suggestions or comments would be greatly appreciated.
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Old 04-18-2009, 01:47 PM
 
Location: Lake Ariel
935 posts, read 1,549,207 times
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Quote:
Originally Posted by mystiky View Post
We are first-time home buyers in Kings County, Brooklyn, NY. Since we are getting a mortgage, we understand that we will need to get separate title insurance policies for the mortgage amount (for the bank) and for the full house value (for us). Also, we want to make sure that we are covered for the market value in the future if there is a title issue. Does this mean that we need to get three separate policies ("Mortgage", "Fee/Owner" and "Simultaneous Issue and market Value Rider Endorsement")? Or is it supposed to be just 2 policies: "Mortgage" and "Simultaneous Issue and Market Value Rider Endorsement"? We are not sure whether "Simultaneous Issue and Market Value Rider Endorsement" policy includes owner insurance.

We are using the following link to estimate the potential policy rates: New York State Title Insurance Rate Calculator (http://www.smprtitle.com/title_insurance_rate_calculator.aspx - broken link).

Any suggestions or comments would be greatly appreciated.

Title insurance provides protection to property owners by insuring against defects in titles that have already occurred, but have not yet been discovered. It differs from most other types of insurance, in that most other types of insurance protect the insured against events that have not yet occurred.

Title insurance is when your mortgage company checks liens that might be against your property or home, its a title search. Its not something that you keep for the length of time your in your home. When you refinance they do another title search and recharge this fee.
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Old 04-18-2009, 01:53 PM
 
Location: Lake Ariel
935 posts, read 1,549,207 times
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Oh by the way if you are talking about mortgage insurance this is different. Mortgage insurance must be taken out, and insisted by your mortgage broker if you are borrowing more than 80% of your home value. For instance your home costs $100,000 and your putting less than $20,000 down your bank or mortgage company will add mortgage insurance.
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Old 04-18-2009, 06:37 PM
 
15 posts, read 44,400 times
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Quote:
Originally Posted by roxxy38 View Post
Title insurance provides protection to property owners by insuring against defects in titles that have already occurred, but have not yet been discovered. It differs from most other types of insurance, in that most other types of insurance protect the insured against events that have not yet occurred.

Title insurance is when your mortgage company checks liens that might be against your property or home, its a title search. Its not something that you keep for the length of time your in your home. When you refinance they do another title search and recharge this fee.
Thanks for your reply.

We are actually buying the house with 25% down and 75% mortgage.

Our question still remains: Does we need to get three separate policies ("Mortgage", "Fee/Owner" and "Simultaneous Issue and market Value Rider Endorsement")? Or is it supposed to be just 2 policies: "Mortgage" and "Simultaneous Issue and Market Value Rider Endorsement"? We are not sure whether "Simultaneous Issue and Market Value Rider Endorsement" policy includes owner insurance.
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Old 04-18-2009, 10:58 PM
 
Location: Lake Ariel
935 posts, read 1,549,207 times
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Quote:
Originally Posted by mystiky View Post
Thanks for your reply.

We are actually buying the house with 25% down and 75% mortgage.

Our question still remains: Does we need to get three separate policies ("Mortgage", "Fee/Owner" and "Simultaneous Issue and market Value Rider Endorsement")? Or is it supposed to be just 2 policies: "Mortgage" and "Simultaneous Issue and Market Value Rider Endorsement"? We are not sure whether "Simultaneous Issue and Market Value Rider Endorsement" policy includes owner insurance.
You need to ask the insurance company. Never heard of this!!! We have one insurance policy on our home, not three. Check with them.
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Old 04-20-2009, 06:50 PM
 
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Quote:
Originally Posted by roxxy38 View Post
You need to ask the insurance company. Never heard of this!!! We have one insurance policy on our home, not three. Check with them.
Chheck out this thread. Hence why I asked about my issue.

Thanks again!

5000$ Title search fee
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Old 04-21-2009, 07:10 AM
 
Location: Moving to Rockland County, NY
13 posts, read 41,782 times
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Yeah, title insurance can be complicated. You don't mention having an attorney to handle your transaction. He or she should be advising you about this, and you absolutely should have an attorney handle your closing -- not just for this issue but for all the others that crop up.

You have the issue sort of correct. It's not three policies, it's two. You need a policy to cover yourself against a potential defect in title (that's one), and if you get financing, which you are, your bank will require you to buy one to protect the bank (that's two). Both policies protect your purchase up to the full value of what you're buying.

Generally, people think of the two policies as one, because the costs are combined into a "simultaneous" premium -- the costs are generally not broken up. And it's cheaper to buy them simultaneously rather than separately.

Do you need title insurance? Well, your bank is going to require you to get it to protect them, and no attorney in NYS would allow a client to buy a property without it. So yes.


Do you need the market value rider? That's your call. “Market Value” is an endorsement or rider attached to your title insurance policy. The cost of purchasing a market value rider, which is completely optional but must be offered by your title insurer, is approximately 10% of the cost of your owner’s policy premium. A market value rider to your policy will insure you in the case of a “total title loss” for the full value of the property should it exceed the purchased insurance at the time of closing.

Most attorneys don't recommend the market value rider, because the risks of total loss are so low. But in a market like this, when you're buying at what is probably a relative low to where the market will be in 5 or 10 years, I would get the rider. The rider protects your market upside, and it's not particularly expensive. That said, it's generally not recommended, so you don't need to get it.
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Old 04-21-2009, 09:17 AM
 
15 posts, read 44,400 times
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Thanks very much for your help and good answers. I think that for extra 10% ($350-$400) of what my Title Insurance fees will be, getting a Market Value Rider is a no brainer for the longer-term peace and tranquility. And yes, I am going to use a lwayer, but want to know everything before speaking with them so I won't get ripped off at the "closing table". Let me rephrase that: I won't be ripped off "too-much"

Last edited by mystiky; 04-21-2009 at 09:38 AM..
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Old 04-21-2009, 09:19 AM
 
Location: Lake Ariel
935 posts, read 1,549,207 times
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Quote:
Originally Posted by mystiky View Post
Chheck out this thread. Hence why I asked about my issue.

Thanks again!

5000$ Title search fee
Again, your title insurance/search fee is for the bank to check the property/home against liens. Everyone has to pay this when purchasing a home. Your bank, where you are taking a mortgage should give you a breakdown of the cost of each item. Look at each item on your contract and it should be listed. The cost varies from place to place. This is only for the title search, its only a one time payment. The only other time you will pay it is on a refinance.
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Old 04-21-2009, 09:36 AM
 
15 posts, read 44,400 times
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Quote:
Originally Posted by roxxy38 View Post
Again, your title insurance/search fee is for the bank to check the property/home against liens. Everyone has to pay this when purchasing a home. Your bank, where you are taking a mortgage should give you a breakdown of the cost of each item. Look at each item on your contract and it should be listed. The cost varies from place to place. This is only for the title search, its only a one time payment. The only other time you will pay it is on a refinance.
Yes. The title search is estimated at like $300 on what I got from my bank.

Thanks again!
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