If you have recently become a homeowner, you may likely have several questions regarding the additional expenses you should expect to incur aside from your mortgage and utilities, including how is title insurance cost calculated?. Homeowner’s insurance is undoubtedly one extremely important form of protection to acquire. However, there is another type of insurance you may benefit from purchasing if somebody owned your home before you: owner’s title insurance.
What Is Title Insurance?
Title insurance is a type of indemnity insurance that shields both homeowners and lenders from financial loss resulting from defects in a property’s title (e.g. deed). Property titles may be defective due to unknown liens, easements, encumbrances, and public record errors, among other reasons. An owner’s title insurance policy will protect you from claims related to issues such as the previous homeowner’s failure to pay property taxes or a contractor who did not receive pay for construction work completed on the home prior to purchase. Unlike other forms of insurance, title insurance is a one-time payment rather than a monthly commitment.
How To Find Out The Cost Of Title Insurance
One of the most effective ways of determining the cost of title insurance, aside from asking a title company, is by using an online calculator. However, it is also important to what factors impact the cost of title insurance, as this can help you save money. The cost of title insurance is regulated in 41 states.
Calculating The Cost Of Title Insurance Premium
Title insurance premiums vary depending on the state, the type of property, the home’s purchase price, and the home loan amount. If you choose to settle your mortgage, the charges associated with title may be included in your good faith estimate. Call Mathis Title for a quote!
Qualifying For A Reissue Rate
A reissue rate represents a discount of the title insurance premium you may receive in the event that you are issued a new policy. The main benefit of this scenario is the fact that you can enjoy the same level of coverage at a reduced cost. However, you will only qualify for a reissue rate if you have met your state’s specific requirements. The discount you receive may be either a fixed or a variable percentage. According to one ABC News report, the discount offered by a reissue rate typically falls between 25% and 60% off, and 40% is the most common.
Contact A Title Insurance Expert For More Info On How Title Insurance Is Cost Calculated
Reach out to the professionals at Mathis Title Company in Fairfax, Virginia for more information on how title insurance premiums are calculated. We provide title insurance, real estate settlement services, and legal advice to homeowners and lenders.
During the sale and purchase of a home, Mathis Title will hold the funds in an escrow account prior to title transfer and closing. After the title order has been approved, we will begin a title search to ensure a clean title transfer. As part of the process of issuing title insurance, we always work with trusted underwriting companies. We offer both regular and enhanced owner’s policies. If you decide to refinance your home within a few years, you may qualify for a reissue rate for title insurance coverage. Our strong legal background helps us understand the title transfer process.
Call Mathis Title Insurance today at (703) 214-4020 or contact us online to request a consultation or to learn more about our services.