Standard Owner's Policy
Enhanced/Eagle Policy (+20%)
Estimated Title Premiums
Owner's Policy Premium:$0.00
Lender's Policy Premium:$0.00
Estimated Endorsements/Fees:$0.00
Total Estimated Cost:$0.00
*Calculations based on standard New Jersey tiered rate manuals. Lender's policy cost assumes a simultaneous issue with the Owner's policy for purchases.
Understanding New Jersey Title Insurance Rates
Title insurance is a critical component of real estate transactions in New Jersey, protecting both property owners and lenders against defects in the property's legal title. Unlike other forms of insurance that protect against future events, title insurance protects against claims arising from past occurrences, such as unknown liens, forged signatures, or errors in public records.
Key Takeaway: In New Jersey, title insurance rates are typically "all-inclusive" of the title search and examination fees, although settlement fees and endorsements are charged separately.
How NJ Title Insurance Premiums Are Calculated
New Jersey is a regulated state regarding title insurance. Most title insurance companies adhere to a filed manual of rates. The premium is a one-time fee paid at closing. The cost is determined based on the purchase price of the home (for an Owner's Policy) or the loan amount (for a Lender's Policy).
Standard Rate Tiers
The premium calculation follows a tiered structure, meaning the rate per $1,000 of coverage decreases as the property value increases. While specific underwriters may vary slightly, a typical standard rate structure in New Jersey looks like this:
First $100,000: Approximately $5.25 per $1,000
$100,001 to $500,000: Approximately $4.25 per $1,000
$500,001 to $2,000,000: Approximately $2.75 per $1,000
Over $2,000,000: Approximately $2.00 per $1,000
Owner's Policy vs. Lender's Policy
There are two main types of title insurance policies issued during a transaction:
1. Owner's Policy
This protects you, the buyer, for as long as you or your heirs own the property. It covers the full purchase price. In New Jersey, it is customary for the buyer to pay for their own Owner's Policy.
2. Lender's Policy (Loan Policy)
If you are taking out a mortgage, your lender will require a Loan Policy to protect their security interest in the property. This policy only covers the outstanding loan balance.
Simultaneous Issue Savings
When you purchase a home and obtain a mortgage, you need both policies. Fortunately, in New Jersey, when an Owner's Policy and Lender's Policy are purchased together (simultaneously), the Lender's Policy is usually issued for a nominal fee (often around $25 to $100), rather than the full premium rate. Our calculator automatically applies this "simultaneous issue" discount for purchase transactions.
Enhanced vs. Standard Coverage
Homebuyers in New Jersey often have the choice between a Standard policy and an Enhanced (often called "Eagle") policy. An Enhanced policy typically costs about 20% more than the standard premium but covers additional risks such as:
Post-policy forgery
Building permit violations
Zoning law violations
Encroachments onto your property
Who Pays for Title Insurance in NJ?
In New Jersey, it is standard practice for the buyer to pay for both the Owner's and Lender's title insurance policies. However, everything in real estate is negotiable. Occasionally, a seller may agree to cover some closing costs, but the default expectation is that title charges are the buyer's responsibility.
Refinance Rates
If you are refinancing your home, you will not need a new Owner's Policy (your original one remains valid). However, your new lender will require a new Lender's Policy. Title insurers in NJ often offer "reissue" or "refinance" rates that are discounted compared to the basic rates, provided the refinancing occurs within a certain timeframe or simply because it is a lower-risk transaction.
// Helper to format currency
function formatCurrency(num) {
return '$' + num.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
}
// Toggle inputs based on transaction type
function toggleInputs() {
var transType = document.getElementById('transactionType').value;
var priceInput = document.getElementById('propertyPrice');
var priceGroup = priceInput.parentElement;
if (transType === 'refinance') {
priceInput.value = ";
priceGroup.style.display = 'none';
} else {
priceGroup.style.display = 'block';
}
}
// Core Calculation Logic
function calculateTitleInsurance() {
// 1. Get Inputs
var transType = document.getElementById('transactionType').value;
var price = parseFloat(document.getElementById('propertyPrice').value) || 0;
var loan = parseFloat(document.getElementById('loanAmount').value) || 0;
var policyType = document.getElementById('policyType').value;
// 2. Variables
var ownersPremium = 0;
var lendersPremium = 0;
var fees = 100; // Estimated generic recording/endorsement fees
var total = 0;
// 3. Define Rate Logic Function
// NJ Standard Rates (Approximation for Standard Manual)
function getNJPremium(amount, isRefi) {
var premium = 0;
var remaining = amount;
// Rate tiers
// Tier 1: 0 – 100,000
var tier1Limit = 100000;
var tier1Rate = isRefi ? 4.00 : 5.25; // Lower start rate for refi often
// Tier 2: 100,001 – 500,000
var tier2Limit = 400000; // The chunk size
var tier2Rate = isRefi ? 3.25 : 4.25;
// Tier 3: 500,001 – 2,000,000
var tier3Limit = 1500000; // The chunk size
var tier3Rate = isRefi ? 2.00 : 2.75;
// Tier 4: Over 2,000,000
var tier4Rate = isRefi ? 1.50 : 2.00;
// Calculate Tier 1
var chunk = Math.min(remaining, tier1Limit);
premium += (chunk / 1000) * tier1Rate;
remaining -= chunk;
if (remaining <= 0) return Math.ceil(premium);
// Calculate Tier 2
chunk = Math.min(remaining, tier2Limit);
premium += (chunk / 1000) * tier2Rate;
remaining -= chunk;
if (remaining <= 0) return Math.ceil(premium);
// Calculate Tier 3
chunk = Math.min(remaining, tier3Limit);
premium += (chunk / 1000) * tier3Rate;
remaining -= chunk;
if (remaining <= 0) return Math.ceil(premium);
// Calculate Tier 4
premium += (remaining / 1000) * tier4Rate;
return Math.ceil(premium);
}
// 4. Perform Calculation
if (transType === 'purchase') {
if (price Price (rare negative equity purchase)
if (loan > 0) {
if (loan <= price) {
lendersPremium = 25;
} else {
// If loan is higher than price, pay difference at regular rate
var diff = loan – price;
// Simplify: Nominal + difference premium
lendersPremium = 25 + getNJPremium(diff, false);
}
}
} else {
// Refinance
if (loan <= 0) {
alert("Please enter a valid Loan Amount.");
return;
}
ownersPremium = 0; // No new owner policy needed
lendersPremium = getNJPremium(loan, true); // Use refi rates
}
// 5. Total
total = ownersPremium + lendersPremium + fees;
// 6. Display Results
document.getElementById('displayOwnerPremium').innerHTML = formatCurrency(ownersPremium);
document.getElementById('displayLenderPremium').innerHTML = formatCurrency(lendersPremium);
document.getElementById('displayFees').innerHTML = formatCurrency(fees);
document.getElementById('displayTotal').innerHTML = formatCurrency(total);
document.getElementById('resultsArea').style.display = 'block';
}
// Initialize inputs state
toggleInputs();