Escrow & Title
What is the difference between an owner's title insurance policy and a lender's title insurance policy?
AThere is no difference — they are the same policy
BAn owner's policy protects the buyer's equity; a lender's policy protects only the lender's interest✓ Correct
CA lender's policy protects the buyer; an owner's policy protects the lender
DOnly one policy is required in Maine
Explanation
An owner's title insurance policy protects the buyer's equity and ownership interest. A lender's (mortgagee's) policy protects only the lender's interest up to the loan amount.
People Also Study
Related Maine Questions
- An owner's title insurance policy in Maine protects the:Escrow & Title
- In Maine, a buyer's owner's title insurance policy purchased at closing protects:Escrow & Title
- A title insurance policy in Maine protects against:Escrow & Title
- In Maine, which party typically pays for the owner's title insurance policy in a residential transaction?Escrow & Title
- On a $200,000 FHA loan in Maine, the upfront mortgage insurance premium (UFMIP) is 1.75%. The amount added to the loan is:Finance
- A Maine buyer's 30-year mortgage has a monthly payment of $1,650 for principal and interest. Over the life of the loan, the total amount paid in P&I is:Finance
- A Maine home was purchased for $220,000 and the buyer obtains an 80% LTV mortgage. If the interest rate is 6% and the loan is fully amortized in 30 years, the loan amount is:Real Estate Math
- A Maine buyer obtains an FHA loan. FHA mortgage insurance protects:Finance
Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
Study This Topic
Practice More Maine Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maine Quiz →