How much does title insurance cost?

Answer 1

Title insurance rates vary from state to state and market to market. In some states, the fees are set by the AGENT, and are market competitive -- they may be negotiated by the Agent. In other states, the rates and fees are regulated by that state's Department of Insurance and the fees may not be negotiated - higher or lower than the regulated fees. In both cases, the premium fees are calculated on a per $1000 rate. That rate is then based on whether the transaction is a "basic" rate, "re-issue" rate, "refinance" rate or "new construction" rate. Basic rate covers a policy issued on a Purchase transaction and usually calculated on the Purchase Price and the Mortgage Amount. Re-Issue rate covers a policy issued on a Purchase transaction and whether or not the Sellers can provide backtitle to the Buyers. The back title criteria is typically based on how old the Sellers' Owner's Policy is. (Usually a lower per $1000 rate than basic) Refinance rate covers a policy issued to the current owner on a Mortgage loan. Depending on the state, the previous mortgage amount may have a bearing on how the rate is calculated.(Usually a lower per $1000 rate than basic) New construction rates covers the builder during the construction of the property, before the construction is complete. (Usually a significantly lower rate than basic since the property is not a fully finished home/building during the time of coverage.) New construction rates do NOT cover a buyer purchasing a completed home from the builder, only the time the home is BEING constructed and covering the builder.