THESE PREMIUMS ARE GOING UP!
In the midst of falling interest rates that are making home-buying and refinancing extremely popular right now, your friends at Tohickon Settlement Services want to be certain you’re aware that some costs connected to title insurance are actually going UP.
On May 1, 2020, premiums for flat-fee TITLE INSURANCE ENDORSEMENTS, required by lenders at settlement, are set to increase.
Title insurance premiums are set by each state, with every title agency obligated to charge the established rate for properties within that state. No matter which title company you choose, the cost of your title insurance and any endorsements will be the same. That’s the law.
Any flat-fee endorsement costing less than $250 before May 1 will double. Each endorsement now costing over $250 will
increase by $200.
“For the average home-buyer,” says Brendan Nolan, CEO, “the trio of standard residential endorsements, now $50 each, will increase closing costs from $150 to $300 on May 1.
“Additional endorsements—Condo, PUD and ARM, for example, for properties in a condominium community or planned unit development or for adjustable rate mortgages—will be $100 each instead of $50.”
If you’re buying a home and counting on your Realtor to provide closing cost estimates, make sure he or she is using the new endorsement rates for any post-May 1 settlement.
If you have any questions about this rate hike, title insurance or how a settlement works, you can check out Tohickon Settlement Services at Tohickon.com or call 215.794.0700. Tohickon’s title and closing experts welcome your questions with no obligation. Remember, by law you can choose your own title and settlement company for your purchase or sale.