District of Columbia
The lender’s policy is also known as a “loan policy” and is required for all transactions, purchases and refinances alike, since lenders must also protect against title related defects.
A lender wants to ensure that the loan they are issuing is protected by title insurance and their investment is covered. A lender’s policy protects the mortgage holder (the institution that owns the mortgage).
If there is a fault in title that results in a loss, the mortgage holder will be paid back. You will need to order a new lender’s policy to refinance your property.
READ MORE: Why lenders require title insurance
(minimum premium $101)
|Amount of Insurance||Cost Factor||Plus||On Amount Over|
|Up to $250k||$2.70/$1k||—||—|
|$250,001 to $500,000||$675.00||$2.34/$1k||$250k|
|$500,001 to $1 million||$1,260.00||$1.98/$1k||$500k|
|$1,000,001 to $5 million||$2,250.00||$1.62/$1k||$1 million|
|$5 million+||$8,730.00||$0.75/$1k||$5 million|
Note: When calculating the cost of a policy, please keep in mind we use a tiered rate. So if the refinancing amount is $600k and a lender’s title policy is purchased, the cost is calculated by multiplying:
250 x $2.70 = $675
|Grand Total = $1,458|