All Forum Posts by: Erica Larence-Penna

@Kevin Hofstee it shouldn't be an issue with refinancing.  @Elise Marquette maybe you can provide some insight from a lending perspective?

@Peter Walther maybe I worded it incorrectly, but I'm not talking about risk.  Obviously the risk of a missed title defect is low no matter the purchase price as long as a competent title exam is completed.  I'm talking about the title company's net income per transaction and the actual cost of the premium to the consumer.  The premium amount increases as the purchase price increases even if the risk doesn't.

For example, on a $100,000 cash purchase in FL, the owner's title insurance premium is $575, but on a $1,000,000 cash purchase in FL, it's $5,075.  Using your 70% (which isn't always the case; it depends on the arrangement with the underwriter), on the first deal, that's $402.50 of the premium to the title agent.  On the $1,000,000 purchase, the title agent keeps $3,552.50.  My company typically charges a $450 settlement fee and a $250 title exam fee, but we have the underwriter handle the exam, so that fee is paid to the underwriter.  We have overhead costs just like in any other business; paralegals, attorneys to review title and draft docs, courier fees, notary fees (if a notary is needed), commissions, etc.  My point was that it's tougher for us to lower our fees when the purchase price is on the lower end because our profit is much lower.  The million dollar purchases don't come as often as I'd like, but on those deals I'm much more able to lower my fees or even do the closing at cost.

I'm not saying you can't make a lot of money working in title; I'm saying that on a lower purchase price it's tougher for us to discount our fees because our profit is much lower.

@Peter Walther depends on the purchase price/loan amount since the premiums correlate to that.  If it's a $100,000 purchase price, the margin is very slim, but if it's a $1,000,000 purchase price, yeah, I'd agree, the margin isn't very slim.  Based on the fees the post provided, the purchase price on the property isn't that high and she'd likely only be able to save a couple hundred, at most.

@Ivonne Pinedo I'm a title attorney in FL and the margins are very slim in this business.  If you're closing in less than a week it's probably too late to switch and you'd probably only save a couple hundred at most.  The title insurance premium is the same no matter what company you use, but honestly the other fees they are charging seem very reasonable.

Welcome @Lauren Lewis!  I'm a fellow New Englander and own a four-unit in RI.  We also started out using the househacking strategy and we did it with student loans - rental properties can be a great way to generate more income to put towards student loans.  I think the best thing to do is get prequalified with a lender and make sure you qualify for the loan.

Also, activating your license will get you access to MLS. Plus you can make a commission on what you buy!

@Todd Ashley I believe there is an exception if you move more than 100 miles away from your current property. We are relocating as well and looked into doing a second FHA loan, but we ended up finding a better option.

@Hannah Noble reach out to a loan officer. They'll be able to run your credit and take a look at your DTI to see what you can afford. I highly recommend @Elise Marquette!

@Lucy Smi sounds like a decent rate.  How much are your other closing costs?

@Patrick Giblin I'd suggest finding a lender who is able to lend in each state you're looking in.  I'd recommend @Elise Marquette.  Her company is licensed in all 50 states.

@John Matthew Johnston depends on the rate you're able to get!  It can't hurt to ask a lender.  When did you refinance?  I had a client refinance in February and she is refinancing again and is saving about $300/month.  Reach out to @Elise Marquette