Standard Rate (National Avg)
New York (High Tier)
Florida (Promulgated Rate)
Texas (Fixed Rate)
California (Variable)
Purchase (New Owner)
Refinance (Existing Owner)
Estimated Premium Breakdown
Owner's Title Policy:–
Lender's Title Policy:–
Endorsements & Fees (Est.):–
Total Estimated Cost:–
*Note: This calculator provides an estimate based on common tier structures used by major underwriters like First American. Actual rates vary significantly by state, county, and specific policy endorsements (e.g., Eagle Protection). Always consult an official fee sheet or a closing agent for exact quotes.
Understanding First American Title Insurance Rates
When purchasing a home or refinancing a mortgage, title insurance is a critical component of your closing costs. Unlike other forms of insurance that protect against future events, title insurance protects against claims regarding past events—specifically, defects in the property's title history. This calculator helps estimate the costs associated with policies typically underwritten by major providers like the First American Title Insurance Company.
How Are Title Insurance Premiums Calculated?
Title insurance premiums are generally regulated by the state insurance commission where the property is located. While First American and other underwriters have specific rate sheets, the core calculation factors remain consistent:
Purchase Price: The Owner's Policy is calculated based on the full purchase price of the home. This covers the homeowner's equity and legal ownership.
Loan Amount: The Lender's Policy is calculated based on the mortgage amount. This protects the bank's financial interest in the property.
Geography: Rates vary wildly. For example, Texas and Florida have state-mandated "promulgated" rates that are identical across all insurers, while states like California or New York may see more variance between companies.
Owner's vs. Lender's Policies
In a standard purchase transaction, two policies are usually issued:
Owner's Policy: Protects the buyer. It is usually optional but highly recommended. In many states, the seller traditionally pays for this, though it is negotiable.
Lender's Policy: Protects the mortgage company. If you are getting a loan, this is mandatory. The buyer almost always pays this premium.
The "Simultaneous Issue" Discount
One of the most important concepts in title insurance pricing is the "Simultaneous Issue" rate. If you were to buy an Owner's Policy and a Lender's Policy separately, the cost would be high. However, when bought together at closing (a purchase transaction), insurers like First American typically charge the full premium for the Owner's Policy (based on the sale price) and a significantly reduced nominal fee (often $25 to $100 depending on the state) for the Lender's Policy. This calculator accounts for this discount in purchase scenarios.
Refinance Rates
If you are refinancing, you already own the home, so you generally do not need a new Owner's Policy. You only need to purchase a new Lender's Policy for the new bank. Because the title was likely checked recently when you bought the house, many insurers offer a "Reissue Rate" or "Refinance Rate" which is cheaper than the standard basic rate.
Typical Rate Tiers
Most calculations follow a tiered structure per $1,000 of liability. A common estimation structure looks like this:
First $100,000: High rate (e.g., $5.75 per $1,000)
$100,001 to $1,000,000: Medium rate (e.g., $5.00 per $1,000)
$1,000,001 to $5,000,000: Low rate (e.g., $2.50 per $1,000)
Over $5,000,000: Lowest rate (e.g., $2.00 per $1,000)
function toggleInputs() {
var type = document.getElementById('transType').value;
var priceInput = document.getElementById('purchasePrice');
var priceWrapper = priceInput.parentElement;
if (type === 'refinance') {
priceWrapper.style.opacity = '0.5';
priceInput.disabled = true;
priceInput.value = ";
} else {
priceWrapper.style.opacity = '1';
priceInput.disabled = false;
}
}
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
// A generic function to calculate rate based on tiered liability
// Modeled after common ALTA structures
function getBasePremium(amount, state) {
if (amount <= 0) return 0;
var premium = 0;
var tiers = [];
// Define rate tiers based on state selection (Approximations for estimation)
if (state === 'fl') {
// Florida Promulgated style approximation
// $5.75/$1k up to 100k, $5.00/$1k up to 1m
tiers = [
{ limit: 100000, rate: 0.00575 },
{ limit: 1000000, rate: 0.00500 },
{ limit: 5000000, rate: 0.00250 },
{ limit: 10000000, rate: 0.00225 },
{ limit: Infinity, rate: 0.00200 }
];
} else if (state === 'tx') {
// Texas Formula style approximation (Base + tiers)
// Simplified linear approximation for calculator
tiers = [
{ limit: 100000, rate: 0.00830 }, // Higher base in TX usually
{ limit: 1000000, rate: 0.00530 },
{ limit: 5000000, rate: 0.00330 },
{ limit: Infinity, rate: 0.00230 }
];
} else if (state === 'ny') {
// NY Zone 2 style approximation
tiers = [
{ limit: 100000, rate: 0.00630 },
{ limit: 1000000, rate: 0.00510 },
{ limit: 5000000, rate: 0.00310 },
{ limit: Infinity, rate: 0.00220 }
];
} else {
// Standard / National Avg approximation
tiers = [
{ limit: 100000, rate: 0.0058 },
{ limit: 1000000, rate: 0.0045 },
{ limit: 5000000, rate: 0.0025 },
{ limit: Infinity, rate: 0.0020 }
];
}
var remaining = amount;
var previousLimit = 0;
for (var i = 0; i < tiers.length; i++) {
var tierAmount = tiers[i].limit – previousLimit;
if (remaining 0) {
// Simultaneous Issue Fee (Simultaneous issue is usually nominal, e.g., $25-$100)
// However, if Loan Amount > Purchase Price (rare), add difference
var simFee = 100; // Average sim fee
if (loan > price) {
var diff = loan – price;
var diffPremium = getBasePremium(loan, state) – getBasePremium(price, state);
lenderPremium = simFee + diffPremium;
} else {
lenderPremium = simFee;
}
}
// Est. Closing/Endorsement Fees
fees = 250;
} else {
// Refinance Logic
// Only Lender Policy needed.
// Often "Reissue Rate" applies (approx 30-40% discount off standard)
var baseLender = getBasePremium(loan, state);
lenderPremium = baseLender * 0.70; // 30% discount for reissue assumption
ownerPremium = 0;
fees = 350; // Slightly higher fees for standalone handling
}
var total = ownerPremium + lenderPremium + fees;
// Display
document.getElementById('ownerRes').innerText = (ownerPremium > 0) ? formatCurrency(ownerPremium) : "N/A (Refinance)";
document.getElementById('lenderRes').innerText = formatCurrency(lenderPremium);
document.getElementById('feesRes').innerText = formatCurrency(fees);
document.getElementById('totalRes').innerText = formatCurrency(total);
document.getElementById('results').style.display = 'block';
}