By TJ Trembley

There are two types of title insurance – a lender's policy that insures the lender against loss due to legal issues in the future, and an owner's policy that protects the homeowner against any future loss.  

The title company conducts research on who legally owns a property and determines if there are any unpaid tax liens or judgments against the property. In some states, lawyers are used for title searches and escrows instead of title companies.  

The cost of title insurance varies depending on the area of the country, purchase price of the house, loan amount, and the policy’s coverage.  

Who pays for the insurance (the buyer or the seller) depends on local practice and, in some areas, the buyer and seller may split the cost.  Generally, title insurance payments are considered negotiable but are very seldom negotiated.  

The title insurance is paid one time, at the closing of the mortgage, whether it be a purchase or a refinance.  However, if you are refinancing, a new title insurance policy may be available at at lower rate. 

For more information, please call or email Wealth Enhancement Mortgage Services.

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