U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 07-20-2015, 09:37 PM
 
24 posts, read 22,197 times
Reputation: 27

Advertisements

Hi All. Getting closer to finalizing the purchase of my home. Basic details $500k home and $400 mortgage at 4% - Nassau County in New York State. While i searched and used on-line resources, i am still a little confused about costs on the GFE

Title Services and lenders tittle insurance $2875.00 - I understand this is mandatory and may include additional fees like title search etc but seems in line with what i am finding on line if not a bit more

Owners title insurance (says you may purchase to protect your interest in the property) - The GFE quotes a number of $2300. This seems high. What are the rules/basis for this cost?

5100K combined for title insurance seems very high. Thoughts? Going to call my lawyer and forward him the documentation just sent to us by the mortgage company
Reply With Quote Quick reply to this message

 
Old 07-21-2015, 07:28 AM
 
Location: MID ATLANTIC
7,846 posts, read 19,177,067 times
Reputation: 8671
Hmmm. You have found the last area where transparency isn't so transparent. But it has gotten better. At least now it's broken down and you can now see the commission earned on each policy. What is really challenging about this, if I as a Realtor or a loan officer were to say you don't need owner's insurance, the sheer liability of uttering those words are now on me if something happens. I will never recommend against owner's coverage.

Each state is different. PA is heavily regulated and insanely expensive. Some states have high Lender's coverage, while others make owners coverage carry the weight of the cost. But no longer can the fees be lumped together, but broken down so you can see what you are paying for.

There are ways you could possibly save or get discounts. One would to see if the seller has a recent policy (YMMV, depends on state and age of policy). Or, see if the policy is "bare bones" and not the Cadillac version. Expect to pay more in many cases for new construction, short sales or foreclosures.
Reply With Quote Quick reply to this message
 
Old 07-21-2015, 03:48 PM
 
Location: Port Charlotte
3,927 posts, read 4,981,185 times
Reputation: 3414
The mortgagee policy policy protects the mortgage amount. The owners policy is the buyers policy to protect the buyer of the property.

Why buy this? True example. In researching a policy, buyer thought he was buying two lots, a large lot behind him, and an acreage tract dropping into a flood plain. Survey showed this entire tract. However, title policy attached to the deed, while showing this survey, deed only showed the two front lots, so the property line went right through the pool on the property, and excluded the bulk of the land. Big mess, and I got pulled in to try to figure out what happened and how to fix it. The buyer was protected by the owners policy especially as the title company failed to catch this.

As to fee for these policies, these are usually set by the state insurance regulations. Ask the title company and they should be able to provide you the fee schedule. The state should give you these figures as well.
Reply With Quote Quick reply to this message
 
Old 07-21-2015, 07:43 PM
 
24 posts, read 22,197 times
Reputation: 27
Thanks for the insight. My attorney and the mortgage broker explained the same to me. They broke it down further to show the various fees that are associated in the GFE which make comprise the overall costs
Reply With Quote Quick reply to this message
 
Old 07-22-2015, 12:33 PM
 
Location: NNJ --> NE FL 2015
1,259 posts, read 1,298,237 times
Reputation: 1109
For what it's worth, this is how my home purchase in NJ went 3 years ago with respect to Title Insurance:

GFE:
Title Services and Lender's Title Insurance: $2,299
Owner's Title Insurance: $2,305

HUD-1 Final Settlement Statement (ie. what I actually paid):
Title Services and Lender's Title Insurance: $2,443
Owner's Title Insurance: $376

** The GFE over estimated the actual cost by $1,785

Last edited by Ivan Putski; 07-22-2015 at 12:45 PM..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top