Title Insurance – Two Fees?I just obtained a couple of potential settlement statements from Ameriquest Mortgage Company. Both have Title Insurance listed as a line item cost. I refinanced this house in June of 2003 and did not have any title insurance on it. I simply paid the fee for the lawyer to do the title search. As I said, I have owned this home since 1991 and have had no one else on the deed since my divorce in 1994.
My question is whether this is an "optional" cost on the loan for refinancing? I'm also wondering why I've received two different line item costs for this insurance? Why such very different costs are associated with the loans?
Answer: Title insurance may be required by your lender in order to refinance. However, this is at the lender's discretion. As far as I know, title insurance is not required by any legislation.
Having said that, I'd also be wondering about the two different costs. This seems very unusual, especially given that you are getting title insurance through the same lender in both cases.
If I were you, I'd definitely find out if you can waive the title insurance through Ameriquest and still get the loan through them if you purchase your own title insurance. If you need to find a title insurer, go to http://www.insuranceguide101.com/title-insurance/ and check-out the companies who provide home-related insurance. Many of these folks will also have title insurance.