Title insurance is not required by law but is usually required by lenders; and is always a good idea for homeowners. Even when a title search is conducted, title insurance is necessary in case there are defects in title that arise in the future that were not or could not have been identified at the time of closing.

You can shop around find your own title insurance company or you can ask your real estate attorney who they prefer to work with.

What is the price of title insurance?

Title Insurance rates are regulated by the Superintendent of Insurance; so rates should be extremely similar between companies. The price of title insurance will vary based on the type of property, the purchase price and loan amount.

One of the companies we work with, CATIC Title, has a calculator on their website which will give live quotes for title insurance policies. You will need the following information to get your title insurance quote:

• Purchase Price, if it’s a purchase
• Loan Amount
• The type of property it is
• Whether you are doing a purchase or a refinance
• the town the property is in

Please visit the link below to access the CATIC Title New York Policy Premium Rate Calculator

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What Happens To My Real Estate Mortgage and Deed if my name changes?

Often, we run into a scenario where an individuals name changed after they purchased or otherwise took title to a real estate property. This can happen for a multitude of reasons, but the most common is in the case of marriage and/or divorce.

Let’s look at a hypothetical situation. Adam and Eve are a young couple. They live together in a rental apartment but they really want a dog. So, even though they are not married, they purchase a home together with a loan from a bank. Eve takes title and signs all documents in her maiden name. A year later Adam and Eve get married. Eve takes Adam’s last name and changes her name legally. 3 years later, they have a baby and want to put on an addition. They decide they are going to do a cash out refinance and use the cash out funds for the addition. The title company does a title search, and title comes back in Eve’s maiden name. Her drivers license and passport now contain her married name. What do we do?

There are two common ways we can fix the land records.

Before Eve changed her name, she could have Quit Claimed her interest to herself in her married name, and then changed her name legally.

If Eve has already changed her legal name, as in our scenario above, she can execute a Name Change Affidavit aka Change of Name Certificate.

The documents have to be recorded on the land records and a filing fee paid to the town.

What is a Name Change Affidavit or Change of Name Certificate?

A Name Change Affidavit or Change of Name Certificate is a legally binding document that is recorded on the land records to give public notice of a name change. This can be used for a few purpose but the most common seems to be for correcting the names of individuals in real estate documents. The Certificate of Name Change must comply with many of the same requirements as a Deed.

Do you need to update your name on the land records?

If you need to update your name on the land records, we can help by drafting, executing and recording your Certificate of Name Change in the town the property is located in. We charge a flat fee for this service of $400 plus filing fees with the town which are usually $60.

If you have any questions please give us a call at 203-885-0500.

The post Updating Real Estate Land Records to Reflect a Name Change appeared first on Glouzgal Law PLLC.

One of the benefits that may come out of the entire COVID Pandemic mess is the increase in local real estate prices across New York and Connecticut. Not only are homes worth more and have become easier to sell to those looking to get out of cities and into the suburbs, but there might also be hidden benefit to those home owners who have Private Mortgage Insurance still active on their loans.

What is Private Mortgage Insurance?

When banks lend money, everything is based on risk. A conventional mortgage requires 20% down, and then you don’t need PMI. If you want to buy a home with less than 20% down, such as an FHA loan, you will be required to get Private Mortgage Insurance to insure the extra risk that comes with a lower down payment and less equity.

How do you get rid of PMI?

There are two ways to terminate PMI early.

The first is to refinance to a conventional loan where you have 20% down, but this requires more equity/down payment and will cost you the full array of closing costs, as you are getting an entirely new loan. You will also have to go through the entire mortgage process again….

The other way is to keep your current loan and hit 20% equity. When you closed, the lender should have provided you with a document telling you that your PMI will automatically terminate at 22% equity and that you can call and request termination at 20% equity. There are two ways to hit the 20% equity sooner:

1. Make additional payments (residential loans o longer have pre-payment penalties); or
2. REAPPRAISE YOUR HOME.

This is where the COVID rush jacking up local real estate prices could help.

BORROWERS/HOME OWNERS WHO HAVE PMI CAN HAVE THEIR HOME REAPPRAISED. APPRAISALS ARE BASED ON COMPS (COMPARATIVE PRICES OF SIMILAR HOMES THAT SOLD IN THE AREA WITHIN THE LAST 3 MONTHS). IF YOUR HOME APPRAISES HIGH ENOUGH FOR YOU TO HAVE 20% EQUITY, YOU CAN GET RID OF PMI.

PMI fees on loans we have seen range from $60 a month to over $300 a month. The cost of an appraisal ranges from $400 to $900 depending on the specifics of the home and who your lender hires. An investment of a few hundred dollars for an appraisal could save borrowers a few hundred dollars PER MONTH on their mortgage payment.

To order a reappraisal you simple need to reach out to your lender and tell them it’s what you want to do!

The post COVID Price Increases on Connecticut & New York Real Estate Could Help Borrowers with Private Mortgage Insurance (PMI) WITHOUT Refinancing appeared first on Glouzgal Law PLLC.