FNF Rate Estimator
FNF National Rate Calculator: Understanding Title Insurance Costs
In the complex landscape of real estate transactions, estimating closing costs accurately is crucial for both buyers and sellers. The FNF National Rate Calculator helps market participants estimate title insurance premiums and settlement fees associated with policies underwritten by the Fidelity National Financial family of companies.
Title insurance is a unique form of indemnity insurance that protects against financial loss from defects in title to real property. Unlike other insurance policies that cover future events, title insurance covers the past—specifically, ownership issues that may have occurred prior to the transaction.
How Title Insurance Premiums Are Calculated
Fidelity National Financial (FNF), being the largest title insurance provider in the United States, operates under various rate schedules depending on the state and county. However, the calculation logic generally follows a "tiered" or "bracketed" system based on the liability amount (the sales price or loan amount).
The Tiered Rate Structure
Most national rate calculations follow a declining percentage model. As the value of the property increases, the rate per thousand dollars of liability decreases. A typical national average structure looks like this:
| Liability Range | Rate Per $1,000 (Estimate) |
|---|---|
| Up to $100,000 | $5.75 per $1,000 |
| $100,001 to $500,000 | $4.50 per $1,000 |
| $500,001 to $1,000,000 | $3.50 per $1,000 |
| Over $1,000,000 | $2.25 per $1,000 |
Owner's Policy vs. Lender's Policy
When using the FNF National Rate Calculator, it is important to distinguish between the two primary types of policies:
- Owner's Policy: Protects the buyer's equity in the property. The premium is typically based on the full Sales Price of the home. In many western states, the seller customarily pays for this, while in the east, the buyer often pays.
- Lender's Policy: Protects the mortgage lender up to the outstanding Loan Amount. If purchased simultaneously with an Owner's Policy (in a "Simultaneous Issue"), the cost is significantly reduced—often a flat fee or a small percentage of the basic rate.
Refinance Rates
If you are refinancing, you generally do not need a new Owner's Policy, as your original policy remains in effect as long as you own the home. However, your new lender will require a new Lender's Policy. FNF offers "Reissue Rates" or "Refinance Rates" which are substantially lower than standard purchase rates, often discounted by 30% to 50% depending on how recently the previous policy was issued.
Additional Fees in the Calculation
Beyond the insurance premium, the "National Rate" estimation often includes ancillary closing fees managed by the title company:
- Escrow/Settlement Fee: The fee paid to the company for handling the paperwork, fund disbursement, and closing. This is often calculated as a base fee plus a variable amount based on the transaction price (e.g., $2.00 per $1,000).
- Endorsements: Specific add-ons to the policy required by lenders (e.g., environmental protection lien, planned unit development).
- Recording Fees: Government fees charged by the county to record the deed and mortgage.
Why Rates Vary by State
While FNF is a national entity, insurance is regulated at the state level. In states like Texas, Florida, and New Mexico, rates are "promulgated," meaning the state government sets the exact rate all insurers must charge. In other states like California or Nevada, title companies file their own rates with the insurance commissioner, allowing for competition. The calculator above uses a zone-based multiplier to approximate these regional differences.