Did you know the new mortgage rules make it cheaper for buyers if they use related companies for mortgage, title and insurance. This is a big plus for those brokers who have in house companies. Why is it cheaper?
The mortgage rules that have gone into place this year limit the total fees you as a buyer can be charged to 3% of the purchase price for all three services, insiurance, title insurance and mortgage if the companies are related. For example, if you buy a home with me, use Propserity Home Mortgage, Sage Premier Title and Long & Foster Insurance, your fees can only total 3%. Even in PA where title insurance rates are set by the State this applies and fees have to be adjusted to meet the 3% total.
However, if you use three unrelated companies each can charge you up to 3% for a total of 9%. That is quite a difference. Not sure if this was the intention of the new rules, but it does create a saving for buyers who use one stop shopping provided by many brokers.
We find many buyers only have a relationship with one of these service companies, and that is usually insurance. So think twice before refusing your agents recommendation to get a quote from the in-house mortgage company, title company and insurance company, however happy you are with your own insurance company.
If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you, contact us or connect
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