Estimate Owner's and Lender's Policy Premiums for Nebraska Real Estate Transactions
Purchase with Loan
Cash Purchase
Refinance
Owner's Policy Premium:–
Lender's Policy Premium:–
Total Title Insurance Cost:–
Note on Nebraska Customs: In many Nebraska counties, it is customary for the Seller and Buyer to split the Owner's Policy cost 50/50. The Buyer typically pays 100% of the Lender's Policy.
Understanding Title Insurance Rates in Nebraska
When purchasing a home or refinancing a mortgage in Nebraska, title insurance is a critical component of your closing costs. Unlike other forms of insurance that protect against future events, title insurance protects against past defects in the property title, such as unpaid liens, forged transfers, or errors in public records.
How Are Nebraska Title Rates Calculated?
Title insurance premiums in Nebraska are generally based on the purchase price of the home (for the Owner's Policy) or the loan amount (for the Lender's Policy). While rates are not set by the state government, title companies file their rate schedules with the Nebraska Department of Insurance. Most companies follow a tiered structure based on the liability amount.
A typical tiered rate structure in Nebraska might look like this:
Base Rate: A set fee for the first $50,000 or $100,000 of value.
Incremental Rates: A lower rate per thousand dollars for amounts above the base tier. For example, coverage between $100,000 and $500,000 is cheaper per unit than the first $100,000.
Types of Policies
There are two primary types of title insurance policies calculated in this tool:
1. Owner's Policy
This policy protects the buyer's equity in the property. The coverage amount is usually equal to the purchase price. In a standard Nebraska purchase transaction, the cost of the Owner's Policy is frequently split 50/50 between the buyer and the seller, although this can be negotiated in the purchase agreement.
2. Lender's Policy
Required by almost all mortgage lenders, this policy protects the bank's security interest in the property. The coverage is based on the loan amount.
Simultaneous Issue vs. Refinance
Simultaneous Issue: When you buy a home with a loan, you are purchasing both an Owner's Policy and a Lender's Policy at the same time. In Nebraska, you generally do not pay the full premium for both. Instead, you pay the full Owner's Policy rate, and the Lender's Policy is issued for a nominal "simultaneous issue" fee (often around $100–$175), provided the loan amount does not exceed the purchase price.
Refinance Rate: If you are refinancing an existing loan, you typically only need a Lender's Policy. Since you already own the home, title companies often offer a "Reissue" or "Refinance" rate, which is significantly discounted (often 30-40% lower) compared to the standard rate, provided the previous policy was issued relatively recently (e.g., within the last 10 years).
Estimated Closing Cost Breakdown
While this calculator provides an estimate of the premiums, remember that closing involves other title-related fees such as:
Closing/Settlement Fee: Fee for the title company to conduct the signing (~$300-$500).
Title Search/Abstracting Fee: Cost to research public records.
Endorsements: Specific additions to coverage required by lenders (e.g., environmental protection, location).
Always request a preliminary HUD statement or Closing Disclosure from your escrow officer for the exact figures specific to your transaction.
function toggleInputs() {
var type = document.getElementById('neTransactionType').value;
var salesGroup = document.getElementById('salesPriceGroup');
var loanGroup = document.getElementById('loanAmountGroup');
if (type === 'refinance') {
salesGroup.style.display = 'none';
loanGroup.style.display = 'block';
document.getElementById('neSalesPrice').value = ";
} else if (type === 'cash') {
salesGroup.style.display = 'block';
loanGroup.style.display = 'none';
document.getElementById('neLoanAmount').value = ";
} else {
salesGroup.style.display = 'block';
loanGroup.style.display = 'block';
}
}
// Function to calculate base premium based on a typical Nebraska tiered structure
// Note: These are representative rates commonly seen in NE, not a specific underwriter's filed rate.
function getStandardPremium(amount) {
if (amount <= 0) return 0;
var premium = 0;
// Tier 1: Up to 50,000
// Minimum often applies around $250-$300
if (amount <= 50000) {
// Approx $6.00 per thousand, min $300
var calc = amount * 0.0065;
return calc < 300 ? 300 : calc;
}
premium = 325; // Base for first 50k (approx)
// Tier 2: 50,001 to 100,000 (Approx $5.25 per thousand)
if (amount <= 100000) {
premium += ((amount – 50000) / 1000) * 5.25;
return premium;
}
premium += (50000 / 1000) * 5.25; // Add full tier 2
// Tier 3: 100,001 to 500,000 (Approx $4.00 per thousand)
if (amount <= 500000) {
premium += ((amount – 100000) / 1000) * 4.00;
return premium;
}
premium += (400000 / 1000) * 4.00; // Add full tier 3
// Tier 4: 500,001 to 1,000,000 (Approx $3.25 per thousand)
if (amount <= 1000000) {
premium += ((amount – 500000) / 1000) * 3.25;
return premium;
}
premium += (500000 / 1000) * 3.25; // Add full tier 4
// Tier 5: 1,000,001 to 5,000,000 (Approx $2.75 per thousand)
if (amount <= 5000000) {
premium += ((amount – 1000000) / 1000) * 2.75;
return premium;
}
premium += (4000000 / 1000) * 2.75; // Add full tier 5
// Tier 6: Over 5,000,000 (Approx $2.25 per thousand)
premium += ((amount – 5000000) / 1000) * 2.25;
return premium;
}
function calculateNERates() {
var type = document.getElementById('neTransactionType').value;
var salesPrice = parseFloat(document.getElementById('neSalesPrice').value) || 0;
var loanAmount = parseFloat(document.getElementById('neLoanAmount').value) || 0;
var ownerPremium = 0;
var lenderPremium = 0;
var simultaneousFee = 150; // Nominal fee for simultaneous issue in NE
// Validation
if (type === 'purchase' && (salesPrice <= 0 || loanAmount <= 0)) {
alert("Please enter both Purchase Price and Loan Amount.");
return;
}
if (type === 'cash' && salesPrice <= 0) {
alert("Please enter the Purchase Price.");
return;
}
if (type === 'refinance' && loanAmount <= 0) {
alert("Please enter the Loan Amount.");
return;
}
// Calculation Logic
if (type === 'purchase') {
// Owner Policy based on Sales Price
ownerPremium = getStandardPremium(salesPrice);
// Lender Policy (Simultaneous Issue)
if (loanAmount <= salesPrice) {
lenderPremium = simultaneousFee;
} else {
// If loan is higher than sales price, pay nominal fee + difference in premium
var baseOwner = getStandardPremium(salesPrice);
var baseLenderFull = getStandardPremium(loanAmount);
lenderPremium = simultaneousFee + (baseLenderFull – baseOwner);
}
}
else if (type === 'cash') {
// Only Owner Policy
ownerPremium = getStandardPremium(salesPrice);
lenderPremium = 0;
}
else if (type === 'refinance') {
// Only Lender Policy, usually at a discounted "Reissue" rate
// Assuming Reissue rate is roughly 65% of standard rate
var standardRate = getStandardPremium(loanAmount);
lenderPremium = standardRate * 0.65;
ownerPremium = 0;
}
// Formatting Output
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
document.getElementById('ownerPolicyRes').innerText = formatter.format(ownerPremium);
document.getElementById('lenderPolicyRes').innerText = formatter.format(lenderPremium);
document.getElementById('totalTitleRes').innerText = formatter.format(ownerPremium + lenderPremium);
// UI Adjustments based on type
var lenderRow = document.getElementById('lenderRow');
if (type === 'cash') {
document.getElementById('lenderPolicyRes').innerText = "N/A";
} else {
// For refi, hide owners? Or show N/A
if (type === 'refinance') {
document.getElementById('ownerPolicyRes').innerText = "N/A";
}
}
document.getElementById('neResults').style.display = 'block';
}
// Initialize inputs on load
toggleInputs();