Please review fees and important reminders in our seller’s closing guide prior to your settlement.
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
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’stitle policy is purchased, the cost is calculated by multiplying:
250 x $2.70 = $675 250 x $2.34 = $585 100 x $1.98 = $198 |
Grand Total = $1,458 |
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
Amount of Insurance | Cost Factor | Plus | On Amount Over |
Up to $250k | $2.65/$1k | — | — |
$250,001 to $500,000 | $662.50 | $2.25/$1k | $250k |
$500,001 to $1 million | $1,225.00 | $1.90/$1k | $500k |
$1,000,001 to $5 million | $2,175.00 | $1.60/$1k | $1 million |
$5 million to $15 million | $6,400.00 | $1.30/$1k | $5 million |
$15 million+ | $19,400 | $1.00/$1k | $15 million |
WE OFFER AN ENHANCED LENDER’S TITLE POLICY UPON REQUEST.
E-MAIL INFO@FEDERALTITLE.COM TO INQUIRE.
NOTE: When calculating the cost of a policy, please keep in mind we use a tiered rate. So if the price is $600k and a limited lender’s title policy is purchased, the cost is calculated by multiplying:
250 x $2.65 = $662.50 250 x $1.90 = $475.00 100 x $1.90 = $190.00 |
Grand Total = $1,327.50 |
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
Amount of Insurance | Cost Factor | Plus | On Amount Over |
Up to $250k | $2.73/$1k | — | — |
$250,001 to $500,000 | $726.00 | $2.59/$1k | $100k |
$500,001 to $1 million | $1,400.00 | $2.38/$1k | $500k |
$1,000,001 to $5 million | $2,600.00 | $1.58/$1k | $1 million |
$5 million+ | $7,600.00 | $1.47/$1k | $5 million |
NOTE: When calculating the cost of a policy, please keep in mind we use a tiered rate. So if the loan is $600k and a lender’s title policy is purchased, the cost is calculated by multiplying:
250 x $2.73 = $273.00 250 x $2.59 = $1,036.00 100 x $4.50 = $450.00 |
Grand Total = $1,547.00 |
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