Mortgage Title Insurance Policy
Mortgage Title Insurance is used by lenders to protect them from any unknown issues that could arise after they make a loan on any real property. Mortgage Title Insurance is required so you will need it, the good news is that if you have your prior owners policy you will be able to obtain whats called a re-issue credit.
The best way to find out how much the mortgage title insurance policy will cost is to get a title insurance quote and compare what other closing costs are associated with your closing. Typically, you will also pay for a title search update and closing fee or settlement fee which covers the other costs like the “closer” (notary) or Attorney who explains the mortgage package.
It is important to know how to compare the mortgage title insurance quote you receive. First, you want to make sure you are comparing the right line items. This is important because due to thew new regulation in the mortgage industry they have decided to lump these fees together in 2 separate line items.
For a Refinance: When looking at your GFE that was provided to you by your mortgage person, you should compare your title insurance quote to Section A line 4 of the GFE.
For a Purchase: When looking at your GFE that was provided to you by your mortgage professional you should compare your title insurance quote in 2 parts. First if you are responsible to pay for the title insurance this fee should be found in Section A Line 5. Then you would want to compare the other closing fees like lenders title costs and closing fees to Section A line 4.
Understanding this allows you to properly compare Florida Title Insurance and save