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Originally posted by emilye2
Wait Carrie-I was with you and nodding right up until the policy to insure her part. Title insurance (with interest) was on the GFE but what's this about a policy?
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Em, not sure what you mean by "with interest". Title insurance is regulated by NYS and are set fees based on mortgage amount and purchase price. You will pay mortgage insurance which is different than title insurance. Title insurance insures the bank against any unknown title problem that could arise in the future, for example, an unrecorded deed.
You have to pay for the title insurance to insure the bank.
For example - mortgage amount is $100,000, the loan policy is $603.00. If you purchase an owner's policy (based on $100,000) the total of both policies is $795.00 (an additional cost to you of only $192) but if you decide to purchase it at a later time, you would pay the original $603 and then $614 for your policy. Unless there is something questionable in the title (like a foreclosure) we usually don't recommend buying the additional policy. Keep in mind the above figures are for my county, I can figure out exact figures if you pm me your county, mortgage amount and purchase price. The bank will most likely require endorsements that are about $25 each.