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Home owners have a tendency to ignore title insurance costs when they refinance their home. In fact, they will leave this to a bank or the finance company to take care of, but the truth is that title insurance is coming down in what is becoming a very competitive market. As a buyer, you can save as much as 30 percent on your title insurance by taking the time to get several quotes for title insurance when you refinance package.
The traditional way of getting title insurance
Traditionally, what competition there has been with title insurance companies has been done by promoting their products to lenders and real estate agents. These products are often evaluated by a standard of profits to the bankers, attorneys and real estate agents. What makes matters worse, once a particular underwriter is used, they have a tendency to stick to the same one for years. Keep in mind that it is the buyer who is paying for the insurance. This system as it has existed for decades has been set up so that there is no benefit to providing discount pricing to the borrower or house buyer.
The model is being challenged
Now, title insurance is being marketed directly to the buyer or borrower. Naturally, with lenders and real estate brokers losing out on their middle man fees and commissions, they are not promoting this cost savings to the buyer. This is why these new title insurance companies are directly marketing their products to house buyers and those refinancing by using the Internet. Because this industry is just now taking hole, you must be the one to take an active role in getting the best price for title insurance.
Ignore what you hear
Title insurance has been overpriced for generations, and because this is having a direct impact on many in the real estate industry, you will hear a lot of negative comments and criticisms, mostly inaccurate, about this new direct-to-customer title insurance product. You should look into the specifics of this new way of delivering quality title insurance and decide for yourself.
Title insurance is easily the most expensive item in your closing costs, so if you can save money here, it will only make your refinancing that much more attractive. The best place to look for competitive title insurance, like other forms of insurance is on the Internet. There are aggregate quotation websites that will get several quotations for you at once rather than one title insurance quote at a time.
