Find out What Escrow is in Real Estate 

How This Law Change Impacts Maryland Real Estate Agents 

 According to the Senate Bill 425: 

Authorizing a licensed title insurance producer to pay compensation for the provision of real estate brokerage services to associate real estate brokers, real estate salespersons, or certain business entities on behalf of a real estate broker in accordance with written disbursement authorization provided by the real estate broker. 

This new law change provides an understanding that title companies can pay compensation to real estate licensees on behalf of the real estate broker, along with a written disbursement authorization provided by the real estate broker. This allows the continuation of the “pay at the table” option that is provided by some real estate and title companies, including Express Title.  

Contact Express Title Today! 

In Maryland, this new legislation has changed the way real estate agents get paid, which means by October 1, 2022, Express Title Company can pay agents directly at the time of closing, with of course the permission of the real estate broker.  

Express Title is a multi-jurisdictional settlement company that conducts real estate closings. We know that successful real estate agents rely on knowledgeable and experienced title insurance professionals. Our team is prepared to exceed expectations and help realtors and homeowners get through the transaction process efficiently. We invest and provide guidance to help you succeed. Contact us Today! 
 

The post Maryland Law Change to Benefit Real Estate Agents  first appeared on Express Title Company.

What Do You Need for a Mortgage Loan? Click Here to Learn More 

What is Private Mortgage Insurance? 

Private mortgage insurance is designed to protect mortgage lenders, not the homeowners. When you buy a home and make a down payment of less than 20% of the home’s purchase price, your lenders might require you to secure PMI. PMI protects your lender from the risks of default and foreclosure if you stop making payments on your loans.  

If you are required to pay private mortgage insurance, it can either be paid in full at the time of closing or added to your monthly mortgage payment. PMI is not a permanent expense and can be dropped from the monthly mortgage payments once the borrower’s loan balance reaches 78% of the original value, or in other words, when equity reaches 22%. Borrowers can also request the PMI be removed when they pay the principal equivalent of the 20% down payment toward their loan.  

Tips for How to Avoid Private Mortgage Insurance 

1. Make a 20% down payment  

The simplest and ideal way to avoid PMI is to make a large down payment of at least 20%. A larger down payment can offer you an advantage, however, not everyone can afford it. The average cost of a home is $375,000 nationally, and that means that 20% of that is $75,000. One way to produce this amount is to save up overtime.  

2. Utilize Lender-Paid PMI 

An alternative to eliminating the costs of monthly payments from PMI is to get a lender to pay for it, known as lender private mortgage insurance (LPMI). This option helps you as a homebuyer get a mortgage on your new home with as little as a 3% down payment, however, the lender will charge a higher interest rate. Therefore, it is important to compare costs and benefits before accepting LPMI. 

3. Use a “Piggyback Loan”  

A piggyback loan, sometimes called an 80-10-10 loan, provides a way to double the size of your down payment with the help of a second mortgage. The first mortgage covers 80% of the home price, and the second covers 10%. The remaining 10% is covered by your down payment. If your lender does not offer a second mortgage, you can get it from a local bank or credit union.  

4. Military Member or Veteran 

If you are a member of the military or a veteran, you qualify for a VA loan. VA loans that are backed by the Department of Veterans Affairs do not require PMI, however, there is a one-time funding fee.  

Homeownership is a monumental life event worth every penny. While waiting to buy a home until you have saved 20% of the down payment may seem like the best option to avoid Private Mortgage Insurance, this shouldn’t be the only thing holding you back. Buying a home can be frustrating and exciting at the same time, so before you use all your savings or retirement funds to pay for that 20% down payment, it is worth remembering that PMI is not tacked onto your expenses forever. To learn more about how Express Title can help you achieve homeownership, contact our team today. We are here to help you every step of the way.  

The post How to Avoid Private Mortgage Insurance   first appeared on Express Title Company.

What Do You Need for a Mortgage Loan? Click Here to Learn More 

What is Title Insurance? 

The purpose of title insurance is to protect the insured against losses that occurred in the past before you even owned the home. During a home buying process, a title insurance company, such as Express Title, will perform the title search and examination that will provide the basis for the title insurance policies that will be issued to you and your lender.  

Title insurance is not required for homeowners, but it is often required for lenders. Even though it is not required for homeowners it is recommended, because without it the buyer will be responsible for any legal costs and may potentially lose the property.  

Types of Title Insurance  

Owner’s Policy:  

• Not required but recommended 
• Protects the equity of the property 
• Protects the buyer 
• Lasts for as long as you or your heirs own the property  

Lender’s Policy:  

• Required by most banks and mortgage lenders 
• Protects lenders until the mortgage is paid off 
• Expires once the mortgage is paid in full 

Benefits for Buyers with Title Insurance 

Being a homeowner without title insurance is risky as you may not be protected from claims against ownership of the property and may lose the investment. With an owner’s title policy, homeowners also receive the following rights:  

• You would be able to use the property as you wish 
• Be free from debts or obligations that were not created or agreed upon you  
• Be able to freely sell or pledge your property as security for a loan.  

It is recommended to invest in title insurance because it will protect the buyer if any title defects occur in the future. Buying title insurance will help you have peace of mind knowing that you will be protected from expenses and legal suits.  

Types of Claims or Risks Covered by Title Insurance 

At Express Title, we offer two levels of coverage: Standard and Enhanced. 

Standard Coverage Covers: 

• Forgery and Impersonation 
• Lack of Competency, Capacity, or Legal Authority of a Party 
• Deed not joined in by a Necessary Party including 
  • co-owner, heir, spouse, corporate officer, or business partner 
• Undisclosed Prior Mortgage or Lien 
• Undisclosed Easement or use Restriction 
• Erroneous or Inadequate Legal Descriptions 
• Lack of Right of Access  
• Deeds not Properly Recorded 

Enhanced Policy will Cover all the Risks of Standard Coverage Plus: 

• Off-Record Matters – claims for adverse possession or prescriptive easement 
• Deed to Land – buildings encroaching on land of another incorrect survey 
• Silent Liens – such as mechanic’s or estate tax liens 
• Pre-existing violations of subdivision laws, zoning ordinances, or CC&R’s  
• Post-Policy Forgery 
• Forced removal of improvements due to lack of building permits 
• Post-policy construction of improvements by a neighbor onto insured land 
• Location and Dimensions of Insured Land 

Protect Your Home with Title Insurance 

Homeownership is a monumental event and an investment worth protecting. At Express Title, our team provides knowledge and expertise to ensure that your home and family are protected now and into the future. If you are interested in learning more about title insurance, please contact us today! 

The post What is Title Insurance? Benefits for Buyers  first appeared on Express Title Company.