Current Financial Article Summary Essay Example | Topics and Well Written Essays - 750 words

Current Financial Article Summary - Essay Example Homeowners are required to post insurance for titles of their properties for the purpose of gaining protection from property claimants. The author averred that â€Å"a 1974 federal law gives purchasers the right to choose† (McClay, 2011, par. 3) the title insurers, which, not all homeowners are aware of. Title insurers underwrite policies that protect the property from unforeseen claims. They, or the agents who sell the policies, conduct a land records search to make sure the property history is clean. The insurance pays for expenses related to defending against claims on the property and covers any valid claims. Homeowners who are refinancing are usually required to buy a policy, often for a lower rate (McClay, 2011, par. 8). The experience of a retired computer engineer, Tom Strange, faced with considering the title insurance offered by his mortgage broker, manifested a substantial savings that ensued from his searching the internet for alternative options. The offered price from Strange’s mortgage broker for the title insurance was $1,870. Upon exercising his right to select other alternatives, he was able to get a title insurance that was pegged a price half than what was offered by his mortgage broker. Actually, as revealed by McClay, the search for alternative options was only made possible when homeowners were revealed to â€Å"receive a summary of their closing costs earlier in the buying process. It’s been required by law since January 2010 that lenders must provide accurate closing costs within three business days of receiving a mortgage application† (McClay, 2011, par. 4). The three-day leeway in time prior to the submission of the application to refinance the mortgage makes it possible for homeowners to search the web and to compare quotations of costs from various title insurers. In analyzing the substantial amount in savings, the report revealed that be doing away with