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Show The Park Record D Section D Page D2 D Thursday, September 7, 1995 -Why do you need title insurance? ? Most people will agree, the main reason for home ownership is security. It is comforting to know you can never be kicked out of your home, and that the hard-earned money that you put into the home will build equity that you and your i i family can benefit from in the : future. This security can be threatened, however, if someone has a legal claim to part of your property. When buying or refinancing a home, mortgage lenders require that a title search of the property be conducted. The purpose of the title search is to make sure there are no outstanding claims on the property. Although title companies search records thoroughly, sometimes certain circumstances are not put on record, or are misrepresented, which can cause defects in the title. The following are examples that would cause a defect in title: Liens that were recorded at the last minute, prior to the title search. Forged documentation on the deed or mortgage. A title transfer by someone who lacks legal capacity, such as a minor or someone who lacks mental competence. Ronald Field A married person conveying title without the consent of his or her spouse. Title insurance is designed to protect the buyer and lender from any of these, as well as other situations that might arise after a home is purchased or refinanced. Title insurance is paid in one lump sum at closing. This payment guarantees to the owner that the title company will defend the policy holder's title in court against any lawsuits that might arise due to these defects, as long as they were in effect prior to issuance of the policy. Exceptions not covered are government restrictions, taxes, zoning or any facts that an accurate physical survey would reveal such as easements or encroachments. Title insurance should not be confused with mortgage insurance. Title insurance, unlike mortgage insurance, will not protect the lender if the buyer defaults on the mortgage. The up-front cost of title insurance is a small price to pay for peace of mind. The protection and security that you receive will work as hard for you as you did to obtain it. Based on the lenders surveyed this week, the interest rate on 30-year 30-year mortgages decreased to 7.750 percent. The interest rate for 15-year 15-year mortgages decreased to 7.250 percent and the rate for one-year adjustable-rate mortgages is 6.125 percent. All rates are quoted with zero points and a one percent origination fee. Ronald Field, Park City, is a licensed mortgage broker, investment advisor and former columnist for the Chicago Tribune. REaders with financing or investment questions can send their letters to Ronald Field, P.O. Box 2060,'Park City, UT 84060. Marriott Ownership Resorts introduces new brand name Marriott Ownership Resorts, Inc. (MORI) announced the comprehensive launch of a new brand name for their vacation division, Marriott Vacation Club International. The new name was created to more effectively describe the division's product line and to provide a platform for the development of vacation products. The new name will be an "umbrella brand" for all of MORI's consumer-oriented activities. Marriott Ownership Resorts will continue to be the legal entity that develops and sells the system of ownership resorts. Marriott Vacation Club International will be the "doing business as" name used in all consumer communication on a global basis. For more information, call 800-622-MCVI (6284). UHFA awards tax credits IT'S NOT WORTH THE WEIGHT. MM ss For better health and fitness, exercise. American Heart Association . The Utah Housing Finance Agency was recently awarded $1.4 million in federal tax credits to be allocated to affordable rental housing projects. UHFA officials estimate the tax credits will provide financing for about 50 low-income units to be constructed in Utah. The new tax credits are in addition to $23 million of credits that UHFA has already allocated this year. According to UHFA executive director William Erickson, where the new tax credits will be allocated should be determined in September. Among the low-income housing projects in Park City which receive UHFA credits are Iron Horse and Aspen Villa. "Tax breaks have been instrumental in getting these projects up," he said. Since 1987, the UHFA has been authorized to award special tax credits to businesses which invest in low-income housing projects, under the 1986 Tax Reform Act. The corporations which invest in these projects are required to keep rates low, and rent only to those who qualify as low-to-middle-income renters. In return, the investing institutions pay a lesser Smart Solutions" Want to avoid our competitors' extra charge for residential delivery? 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Erickson said some of the new credits could go to new or existing housing projects in Park City. The Iron Horse project is currently made up of 42 low-income low-income units, but is expected to eventually contain about 90 units, said Erickson. Aspen Villa is a fledgling project (the financing was yet to be completed, as of Aug. 21) of single-family single-family dwellings which should comprise about 50 units, according to Erickson. Apartment projects receiving the tax credits will generally be required to remain affordable permanently, in accordance with UHFA standards. In return, they will receive $142,000 in tax breaks each year for ten years. Rental rates for the units are required to be affordable for households in the lowest 25 percent of Utah wage earners. "Without (the credits), lower-income lower-income apartments could not be built because of high finance costs and sky-rocketing construction costs," said Erickson. "These additional tax credits awarded to the agency will provide greatly needed affordable rental housing. Program Rate Points Pown Caps Index Bank of Utah 30yrFix 7.875 0 5 30 yr FHAVA 8.000 0 5 15 yr Fix 7.375 0 5 ' Commonwealth United Mortgages 30 yr Jumbo 8.500 0 5 6 mo ARM 5.875 0. 5 26 LIBOR 1 mo ARM 5.500 0 5 11-50 COFI First Union Home Equity Corp 2nd Mortgage Line of Credit Prime 2 ONA 15 yr Fix 9.990 0 NA Great Western Thrift 30yrFix 7.625 0 10 1 5 yr Fix 7.125 0 10 3 mo. ARM 5.100 0 10 11.95 Hth D r Mountain Express Mortgage 30yrFix 7.625 0 5 31 ARM 7.000 0 5 26 T-Bill 1 yrARM 6. 0 5 26 T-Bill Intermountain Mortgage 30yrFix 7.875 0 5 15 yr Fix 7.375 0 5 6 mo. ARM 5.750 0 ' 5 16 LIBOR United Savings BankWestern Mortgage 30yrFix 7.875 0 5 v 1 5 yr Fix 7.250 0 5 1 yrARM 6.500 0 10 26 T-Bill Utah Housing Finance Agency 30 FHA.VA 6.820 0 3-5 30 yrFHAAA 7.120 0 3-5 Washington Federal Savings 30yrFix 7.875 0 5 30 yr Jumbo 8.125 0 5 15 yr Fix 7.500 0 10 West One Bank 30yrFix 7.875 0 5 15 yr Fix 7.750 . 0 5 1 yrARM 6.625 0 10 26 T-Bill The Utah Mortgage Pulse includes up-to-date information on home loan rates charged by Salt Lake City area lenders. The information was accurate on Monday, August 28, but is subject to change without notice. Closing points: One point equals 1 percent of the loan amount. Most lenders also require private mortgage insurance with down payments of less than 20 percent. Also, most lenders charge loan processing fees up to $300, credit and appraisal fees up to $400, origination fees of 1 along with other closing costs. Index: T-Bill Yield on 1 yr T-Bill, COFI Cost of Funds Index, 11th D 11th District Cost of Funds, Libor London InterBank Offered Rate. Source: Mountain Express Mortgage (801) 647-3700. ClUUUJiSIB Ismail) t "i i.jM.-,jg U?'r' ' (end) !XD;: ACTUAL SIZE 90 60 30 Days free incoming calls Days free voice mail Days free instate long distance Approximately 90 minutes of talk time and 24 hours on standby thanks to Nicad Battery Pop-up earpiece serves as sendend key Retractable antenna Come in and see our selection of NEC, MOTOROLA, and AT&T phones $69.95 PARK CITY CELLULAR 1729 SIDEWINDER (Next to 7-11) 649-7626 Requires one year service agreement with CELLULARCII2 PX19 l |