Purchase (Buying a Home)
Refinance (Replacing Loan)
Standard National Avg (Tiered)
Enhanced Coverage (+10%)
Investor / Cash Rate
Owner's Title Policy:–
Lender's Title Policy:–
Endorsements (Est.):–
Total Title Premium:–
Understanding Title Insurance Rates
When closing on a real estate transaction, one of the most critical costs to anticipate is title insurance. 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.
This Title Hound Rate Calculator helps estimators, real estate agents, and homebuyers project the costs associated with both the Owner's Policy and the Lender's Policy. While rates are often regulated at the state level (known as promulgated rates in states like Texas and Florida), they generally follow a tiered structure based on the liability amount.
What is a Simultaneous Issue?
In a purchase transaction where a mortgage is involved, you will typically buy an Owner's Policy (covering the full sale price) and a Lender's Policy (covering the loan amount). When bought together, the Lender's Policy is often issued at a significantly discounted "simultaneous issue" rate, often just a nominal fee.
How Title Premiums are Calculated
Title premiums are typically calculated per $1,000 of the property value or loan amount. The rate usually decreases as the property value increases. The typical structure generally looks like this:
Base Rate: Applies to the first $100,000 of value.
Secondary Tier: A lower rate applies to amounts between $100,000 and $1,000,000.
Tertiary Tier: An even lower rate for amounts over $1 million.
Transaction Types Explained
Purchase: In a purchase, the Owner's Policy is based on the Sale Price. The Lender's Policy is required by the bank and covers the Loan Amount. In many contracts, the seller pays for the Owner's Policy, while the buyer pays for the Lender's Policy, though this varies by county and local custom.
Refinance: In a refinance, you already own the home, so you do not need a new Owner's Policy. However, the new lender will require a new Loan Policy to protect their interest. Refinance rates are often lower than purchase rates, sometimes referred to as "reissue rates."
Why Use a Title Rate Calculator?
Closing costs can be opaque. Using a tool like this helps you audit your Loan Estimate (LE) or Closing Disclosure (CD). If the title fees listed by your settlement agent are significantly higher than the standard tiered rates calculated here, you may have grounds to negotiate or shop for a different title company.
function toggleInputs() {
var type = document.getElementById('transactionType').value;
var priceContainer = document.getElementById('salePriceContainer');
if (type === 'refinance') {
// For refinance, we primarily focus on loan amount,
// but sometimes property value determines tiers.
// We will keep both but label clearly.
// In strict refinance, Owner's policy isn't bought, so sale price is less relevant
// unless calculating LTV. For this calc, we can hide it or keep it optional.
// Let's keep it visible but optional logic.
priceContainer.style.opacity = "0.5";
} else {
priceContainer.style.opacity = "1";
}
}
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
function calculateTieredPremium(amount, regionModifier) {
// Generic Tiered Structure (Representative of National Average)
// Tier 1: Up to 100k -> $5.75 per thousand
// Tier 2: 100k to 1M -> $5.00 per thousand
// Tier 3: 1M to 5M -> $2.50 per thousand
// Tier 4: Over 5M -> $2.25 per thousand
var premium = 0;
var remaining = amount;
// Tier 1
var tier1Limit = 100000;
var tier1Rate = 5.75 / 1000;
if (remaining > 0) {
var chunk = Math.min(remaining, tier1Limit);
premium += chunk * tier1Rate;
remaining -= chunk;
}
// Tier 2
var tier2Limit = 900000; // The next 900k (up to 1M total)
var tier2Rate = 5.00 / 1000;
if (remaining > 0) {
var chunk = Math.min(remaining, tier2Limit);
premium += chunk * tier2Rate;
remaining -= chunk;
}
// Tier 3
var tier3Limit = 4000000; // The next 4M (up to 5M total)
var tier3Rate = 2.50 / 1000;
if (remaining > 0) {
var chunk = Math.min(remaining, tier3Limit);
premium += chunk * tier3Rate;
remaining -= chunk;
}
// Tier 4
var tier4Rate = 2.25 / 1000;
if (remaining > 0) {
premium += remaining * tier4Rate;
}
// Apply modifier (e.g., Enhanced or Investor rates)
return premium * regionModifier;
}
function calculateTitleRates() {
// 1. Get Inputs
var type = document.getElementById('transactionType').value;
var salePrice = parseFloat(document.getElementById('salePrice').value);
var loanAmount = parseFloat(document.getElementById('loanAmount').value);
var region = document.getElementById('stateRegion').value;
// 2. Validation
if (type === 'purchase' && isNaN(salePrice)) {
alert("Please enter a valid Sale Price.");
return;
}
if (isNaN(loanAmount)) {
loanAmount = 0; // Allow cash deals (0 loan)
}
// 3. Set Modifier based on selection
var modifier = 1.0;
if (region === 'enhanced') modifier = 1.10; // 10% surcharge
if (region === 'investor') modifier = 0.80; // 20% discount example
var ownerPolicy = 0;
var lenderPolicy = 0;
var endorsements = 0;
// 4. Calculation Logic
if (type === 'purchase') {
// Owner Policy based on Sale Price
ownerPolicy = calculateTieredPremium(salePrice, modifier);
// Lender Policy Logic
if (loanAmount > 0) {
// Simultaneous Issue Logic:
// If Loan Sale Price (rare, but possible with rolling in costs), pay difference.
if (loanAmount <= salePrice) {
lenderPolicy = 100; // Nominal Sim-Issue Fee
} else {
var basePremium = calculateTieredPremium(salePrice, modifier);
var loanPremium = calculateTieredPremium(loanAmount, modifier);
lenderPolicy = 100 + (loanPremium – basePremium);
}
endorsements = 150; // Estimated standard endorsements (environmental, etc)
}
} else {
// Refinance
// No Owner Policy typically
ownerPolicy = 0;
// Lender Policy based on Loan Amount (often at a "Reissue Rate" discount)
// Let's assume Reissue Rate is roughly 70% of standard rate
var fullRate = calculateTieredPremium(loanAmount, modifier);
lenderPolicy = fullRate * 0.70;
endorsements = 200; // Refi endorsements often higher
}
// Rounding
ownerPolicy = Math.ceil(ownerPolicy);
lenderPolicy = Math.ceil(lenderPolicy);
var total = ownerPolicy + lenderPolicy + endorsements;
// 5. Display Results
document.getElementById('ownerPolicyResult').innerText = formatCurrency(ownerPolicy);
document.getElementById('lenderPolicyResult').innerText = formatCurrency(lenderPolicy);
document.getElementById('endorsementsResult').innerText = formatCurrency(endorsements);
document.getElementById('totalPremiumResult').innerText = formatCurrency(total);
document.getElementById('resultsArea').style.display = 'block';
}