Do you need mortgage insurance?
Mortgage lenders require their customers to get title insurance. A title is the legal document of ownership for property. The companies also require you pay for a title search, which is an extensive search through legal documents to prove the person selling you property has legal claim to do it. So why have title insurance when you’ve had a title search done? The search may have made an error, or it may have come across forged documents which would pass the title search. Around six percent of all policies have a claim, so it is not as uncommon as some may think to have a claim.
With the new tax law on mortgage insurance, homeowners will now be able to deduct most those premiums.
January 6th, 2007 at 3:10 pm
You are absolutely correct. Title insurance most often covers claims that could not be discovered in a search of the courthouse records. Thanks for posting accurate info!