Title insurance is one of the few types of protection policies available to homebuyers and one that is often overlooked because of its optional nature.
Because title insurance is purchased simultaneously with the home, it can be very easy to forego when looked at alongside all the additional fees that are associated with purchasing property.
This is typicaly not advisable, as title insurance is one of the smartest forms of protection a homeowner can buy. Here are just three reasons why every purchaser should get title insurance.
It’s The Best Protection Against Fraud
Title insurance protects the owner of a home from any claim made against their property, whether or not they are responsible. These include unpaid mortgage balances on the home, an improper foreclosure or any form of real estate fraud perpetrated by the seller.
Fraud is more prevalent now than ever before and has started to gain momentum in real estate as well. Forgeries are easier to create in the electronic age and criminals take advantage of today’s ‘do-it-yourself’ attitude to sell property they don’t actually own to unsuspecting victims.
The Insurer Performs An Exhaustive Title Search
Countless records are now made public online for low one-time payments to access them. But does anybody really know what they should be looking for? Title insurers are experts at finding anything suspicious with a home and researching exhaustively to make sure everything about the transaction is legitimate.
And if it’s not, the insurance still covers the buyer for any losses incurred if they are ordered out of their new home should a claim be made against it. Then they will research the claim to make sure it isn’t a fraudulent one.
Title Insurance Is A One-Time Fee
Although it is a large fee, title insurance only needs to be paid for once. Unlike other insurance policies that are either monthly or annually, title insurance is a one-time fee that is acquired at the time of closing. Most mortgage lenders require that their title insurance policy is paid for by the borrower anyway, so it’s not a giant leap to take out your own policy the same time.
Title insurance will also protect against mortgage fraud or any unpaid mortgages the home already has. Although title insurance is strongly recommended, it is a good idea to speak with a professional about it so that any questions you have may be answered.
Refinancing a home loan can provide numerous benefits, but it can also seem daunting and intimidating to some. Many homeowners would love to lower their interest rate or take advantage of other benefits associated with refinancing, but they are concerned about the time and expense associated with refinancing their current mortgage. The FHA Streamline Refinance loan program is designed to provide those who currently have an FHA loan with an easier way to refinance their mortgage, and this may be a desirable option for many.
No Appraisal Needed
One common complaint that people have when applying for refinancing relates to the expenses and time, and the appraisal can have a big impact on both of these factors. The good news is that with the FHA Streamline Refinance loan program, there is no requirement for a new appraisal. The home value at the time of the original loan will be used with the refinance loan, and this is truly beneficial for those who are currently underwater with their home value due to decreasing property values.
Lower Interest Rates
With the FHA Streamline Refinance loan program, borrowers can take advantage of today’s interest rates without needing to go through a full refinance process. This loan program is available to those who have a current FHA loan program, and it is a great program for those who have an interest rate that is higher than the current rates to lock in a lower rate and a lower mortgage payment.
Great Loan Terms
As with the traditional FHA loan program, the Streamline program also offers great loan terms. Borrowers can choose between a 15 and 30-year fixed rate loan, and borrowers will not be subject to a prepayment penalty. These loan terms provide borrowers with flexibility when refinancing their loan to take advantage of a lower interest rate.
The FHA Streamline Refinance loan program is just one of several options available to borrowers who are interested in refinancing their current FHA loan program. It offers numerous benefits to homeowners, but it is not the only option available.
It is wise for homeowners who are interested in refinancing their current mortgage to compare all of the options thoroughly before making a decision. It is best to seek assistance from a trusted mortgage professional. They can help with specific information and guidance with the selection of the right a loan program for each homeonwers needs.
Last week’s economic news included several reports related to housing. The Case-Shiller 20-City Home Price Index for June rose to 4.50 percent as compared to May’s reading of 4.40 percent. Denver, Colorado was the only city to post double-digit year-over-year growth. FHFA also released its House Price Index for June. Home prices for properties associated with mortgages owned or backed by Fannie Mae and Freddie Mac rose at a year-over-year rate of 5.60 percent in June as compared to May’s reading of 5.70 percent.
New Home Sales, Pending Home Sales Rise in July
Commerce Department data revealed that new home sales increased in July to a year-over-year reading of 507,000 against expectations of 510,000 new home sales and June’s revised reading of 481,000 new homes sold. The original reading for June was 482,000 new homes sold. New home sales provided a strong indicator of recovering housing markets as July’s reading was 25 percent higher than it was one year ago.
Pending home sales moved into positive territory in July after June’s reading of -1.80 percent. Pending home sales for July grew by 0.50 percent. Pending home sales are an indicator of future closings, so this is good news as the peak buying and selling season wanes.
The national median home price rose to $285,900 in July, which was two percent higher year-over-year.
Mortgage Rates, New Unemployment Claims Fall
Mortgage rates fell across the board last week. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage fell by none basis points to 3.8r percent; the rate for a 15-year fixed rate mortgage also fell by nine basis points to 3.06 percent. The average rate for a 5/1 adjustable rate mortgage was four basis points lower at 2.90 percent. Discount points for fixed rate mortgages were unchanged at an average of 0.60 percent and fell from an average of 0.50 percent to 0.40 percent for 5/1 adjustable rate mortgages.
Weekly jobless claims were also lower last week with 271,000 new claims filed as compared to expectations of 271,000 new claims filed and the previous week’s reading of 277,000 new claims filed. Last week’s reading was the 25th consecutive week of new jobless claims readings under the benchmark of 300,000 new claims filed; this is the longest stretch for new jobless claims under the 300,000 new claims benchmark in more than fifteen years.
New jobless claims rose by 1000 new claims to a seasonally adjusted average of 272,500 according to the four-week average. Analysts note that the four week average smooths out volatility that can occur with week-to-week readings.
This week’s scheduled economic reports include the Federal Reserve’s Beige Book report, ADP and the federal Non-farm Payrolls reports. The national unemployment rate will be released along with regularly scheduled reports on mortgage rates and new jobless claims.