Standard National Avg (Zone 1)
High Cost Metro (Zone 2)
Low Cost Rural (Zone 3)
Owner's Policy Premium:$0.00
Lender's Policy Premium:$0.00
Total Estimated Premium:$0.00
Note: Lender's policy cost assumes a "Simultaneous Issue" discount if applicable. Actual CTIC rates vary strictly by state, county, and local underwriter regulations.
function toggleInputs() {
var type = document.getElementById('transactionType').value;
// Logic to adjust display if needed, currently kept simple
}
function calculateCTIC() {
// Get Inputs
var priceInput = document.getElementById('purchasePrice').value;
var loanInput = document.getElementById('loanAmount').value;
var type = document.getElementById('transactionType').value;
var zone = document.getElementById('stateRegion').value;
// Validation
if (priceInput === "" || loanInput === "") {
alert("Please enter both Property Value and Loan Amount.");
return;
}
var price = parseFloat(priceInput);
var loan = parseFloat(loanInput);
if (isNaN(price) || isNaN(loan)) {
alert("Please enter valid numbers.");
return;
}
// Logic Definition: Tiered Rate Structure
// This simulates a common tiered structure found in title insurance tables (e.g. Rate per $1000)
// Zone multipliers adjust for regional variance
var multiplier = 1.0;
if (zone === 'metro') multiplier = 1.25;
if (zone === 'low') multiplier = 0.85;
// Base Rate Function
function getBasePremium(amount) {
var premium = 0;
var remaining = amount;
// Tier 1: First 100k
if (remaining > 0) {
var chunk = Math.min(remaining, 100000);
premium += (chunk / 1000) * 5.75;
remaining -= chunk;
}
// Tier 2: 100k – 1M
if (remaining > 0) {
var chunk = Math.min(remaining, 900000);
premium += (chunk / 1000) * 4.50;
remaining -= chunk;
}
// Tier 3: 1M – 5M
if (remaining > 0) {
var chunk = Math.min(remaining, 4000000);
premium += (chunk / 1000) * 3.25;
remaining -= chunk;
}
// Tier 4: Over 5M
if (remaining > 0) {
premium += (remaining / 1000) * 2.50;
}
// Minimum Policy Cost
if (premium 0) {
lendersPremium = 250 * multiplier;
// If loan exceeds purchase price (rare but possible), add difference premium
if (loan > price) {
var diff = loan – price;
lendersPremium += (diff / 1000) * 4.50;
}
}
} else {
// Refinance Logic
// Usually no Owner's Policy needed (already owned).
// Lender's Policy based on Loan Amount, often at a "Reissue" or "Refinance" rate (lower).
ownersPremium = 0;
// Refinance rate is typically ~60-70% of standard rate
var baseLender = getBasePremium(loan);
lendersPremium = baseLender * 0.70;
}
var total = ownersPremium + lendersPremium;
// Display Results
document.getElementById('ownersPremium').innerHTML = "$" + ownersPremium.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('lendersPremium').innerHTML = "$" + lendersPremium.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalPremium').innerHTML = "$" + total.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('results').style.display = 'block';
}
Understanding CTIC Rates and Title Insurance Costs
When closing on a real estate transaction, one of the significant closing costs is Title Insurance. The CTIC Rate Calculator (referencing major underwriters like Chicago Title Insurance Company) helps buyers and borrowers estimate their premiums. Unlike recurring insurance premiums (like health or auto), title insurance is a one-time fee paid at closing.
How Are Rates Determined?
Title insurance rates are regulated at the state level. While the specific "CTIC" rate sheet varies by geography, the calculation generally follows a tiered "per-thousand" liability structure. This means the rate per $1,000 of coverage decreases as the property value increases.
Property Value/Liability: The primary driver of cost. For an Owner's Policy, this is the purchase price. For a Loan Policy, it is the loan amount.
Geographic Zone: Rates in New York or Florida differ significantly from rates in Ohio or Texas due to local legislation and risk pools.
Transaction Type: Purchasing a home typically involves higher premiums than refinancing, as refinancing policies (Loan Policies) often qualify for "reissue rates" or discounts.
Owner's Policy vs. Lender's Policy
Owner's Policy: Protects you, the buyer, against pre-existing title defects (e.g., unpaid taxes, forged deeds, undisclosed heirs). This coverage lasts as long as you or your heirs own the property.
Lender's Policy: Protects the bank or mortgage lender. It is almost always required if you are getting a mortgage. The coverage declines as you pay down the loan principal.
Simultaneous Issue Discount: In a purchase transaction, if you buy both policies at the same time, the Lender's Policy is often heavily discounted (sometimes to a nominal fee like $250), as the risk analysis covers the same title search work.
Using the Calculator
Use the tool above to estimate your costs. Enter the full Purchase Price to determine the Owner's Policy premium. Enter your Loan Amount to calculate the Lender's add-on cost. If you are refinancing, select "Refinance" to see the adjusted loan policy rates, which typically exclude a new Owner's Policy.