Title insurance for re-financing Single Family Residence

5 Replies

You can price up title insurance at https://ratecalculator.fnf.com/ (and the rates are generally pretty standardized). 

You may not need a new owner's title policy if you already have one from when you purchased the property. But you will need a new lender's title policy. And, depending on the age of your existing policy, you might qualify for a "reissue" rate (if it was issued quite recently).

$2500 seems high at a glance. Are you looking at an actual estimate or settlement statement from your title company, or just at a preliminary lender CD? (The latter are notorious for being inflated wild guesses in the early stages of loan processing).

I can't address TX since I'm in OR/WA, but in both states, the state insurance commissioner sets title insurance rates.  They may have other fees like delivery charges that don't fall under this, but for standard title that's it.

If you want extended title insurance, the ALTA survey cost is up to the surveyor and how much he has to do.  However, the rates are regulated.

Homeowners insurance (like on appliances) is un-related to title insurance.

@Kenneth Kussman . Lender will probably require a new Title Policy for the refinance. 

Texas Formula for Title Insurance (Less than 1 Million):

Sales Price -$100,000 = $XXX,XXX times 0.00527 + $832 = Cost Of Title Policy.

In you specific instance Appraisal at $350,000 - $100,000 = $250,000 X 0.00527 = $1317.50 + $832 = $2149.50. The remaining balance up to $2500 may be for some Title Endorsements lender is requiring as part of the refinance package. 

Ask for an explanation!