Texas Title Insurance Premium Calculator
Note: Premium rates are based on the Texas Department of Insurance promulgated rates. Actual costs may vary by title company. This calculator provides estimates only.
When buying or refinancing property in Texas, title insurance is one of the most important — and often misunderstood — closing costs. Many buyers focus on the purchase price and loan terms, only to be surprised by title insurance premiums, endorsements, and settlement fees at closing. Because Texas uses state-regulated title insurance rates, understanding how these costs are calculated can help you plan better and avoid last-minute financial stress.
The Texas Title Insurance Premium Calculator is designed to give you a clear estimate of your total title insurance costs before closing. Whether you are purchasing a home, refinancing an existing loan, or paying cash, this tool helps you understand how much you may need to pay for owner’s and lender’s title insurance policies, discounts, endorsements, and related fees.
What Is Title Insurance in Texas?
Title insurance protects property owners and lenders against financial losses caused by title defects such as:
- Undisclosed liens
- Ownership disputes
- Errors in public records
- Forged documents
- Missing heirs
In Texas, title insurance premiums are regulated by the Texas Department of Insurance (TDI). This means rates are standardized statewide, but total costs may still vary due to endorsements, credits, and additional service fees.
What the Texas Title Insurance Premium Calculator Does
This calculator estimates the total title insurance cost by considering:
- Property purchase price or value
- Loan amount (if financing)
- Transaction type (purchase, refinance, or cash)
- Policy type (owner’s, lender’s, or both)
- Available discounts and credits
- Optional endorsements
- Title examination and closing fees
The result is a detailed breakdown of all major costs involved in Texas title insurance.
How to Use the Texas Title Insurance Premium Calculator
Follow these steps to get an accurate estimate:
1. Enter Property Value
Input the purchase price or market value of the property. This amount determines the base premium for the owner’s policy.
2. Enter Loan Amount
If you are financing the property, enter the loan amount. This is used to calculate the lender’s policy premium.
3. Select Transaction Type
Choose whether the transaction is a purchase, refinance, or cash purchase. This affects which policies apply.
4. Choose Policy Type
Select whether you need:
- Owner’s policy only
- Lender’s policy only
- Both owner’s and lender’s policies
5. Select Property Age
Older properties may carry higher risk, which can influence examination and endorsement needs.
6. Apply Simultaneous Issue Credit
If both policies are issued together, a discount may apply to the lender’s policy.
7. Apply Reissue Credit
If a prior title policy exists within a certain time frame, you may qualify for a reissue discount.
8. Add Endorsements (Optional)
Choose any additional coverage options such as survey protection, mineral rights, zoning, or environmental coverage.
9. Click Calculate
The calculator instantly shows a full cost breakdown and total estimated title insurance cost.
Example Calculation
Example Scenario
- Property Value: $350,000
- Loan Amount: $280,000
- Transaction Type: Purchase
- Policy Type: Owner’s & Lender’s
- Simultaneous Issue: Yes
- Reissue Credit: No
- Endorsements: Survey + Zoning
Estimated Breakdown
- Owner’s Policy Premium: $1,900.00
- Lender’s Policy Premium: $1,350.00
- Simultaneous Issue Discount: –$135.00
- Endorsements: $75.00
- Title Examination Fee: $250.00
- Settlement/Closing Fee: $400.00
Total Estimated Title Insurance Cost: $3,840.00
This example shows how discounts and endorsements directly affect the final amount.
Understanding the Cost Components
Owner’s Policy Premium
Protects the buyer’s ownership rights and remains valid as long as the owner or heirs hold interest in the property.
Lender’s Policy Premium
Protects the mortgage lender and is required for financed purchases.
Simultaneous Issue Discount
When both policies are issued together, the lender’s policy receives a reduced rate.
Reissue Credit
If a previous title policy exists within a qualifying time period, the owner’s premium may be discounted.
Endorsements
Optional add-ons that provide extra protection for specific risks such as access, mineral rights, or zoning issues.
Title Examination Fee
Covers the cost of researching public records to verify legal ownership.
Settlement / Closing Fee
Charged for handling paperwork, escrow services, and final closing procedures.
Who Should Use This Calculator?
- Home buyers in Texas
- Property investors
- Homeowners refinancing a mortgage
- Cash buyers
- Real estate agents and brokers
- Anyone planning a Texas real estate closing
Benefits of Using the Texas Title Insurance Premium Calculator
- Avoids surprise closing costs
- Helps budget accurately for real estate transactions
- Explains premium differences clearly
- Identifies possible discounts
- Saves time and improves financial planning
- Useful for purchases, refinances, and cash deals
Important Notes
- All estimates follow Texas Department of Insurance rate structures
- Actual charges may vary by title company
- Endorsement availability may differ by property
- Always confirm final numbers with your title company
Frequently Asked Questions (FAQs)
1. Is title insurance mandatory in Texas?
It is required for lenders but optional for buyers, though strongly recommended.
2. Who pays for title insurance in Texas?
Traditionally, the buyer pays, but it can be negotiated.
3. Are Texas title insurance rates negotiable?
Base premiums are regulated, but some fees may vary.
4. Does refinancing require title insurance?
Yes, lenders require a new lender’s policy.
5. What is a simultaneous issue discount?
A reduced lender’s premium when both policies are issued together.
6. What is reissue credit?
A discount when a prior title policy exists within a qualifying period.
7. Are endorsements required?
No, they are optional but may be recommended.
8. Does property age affect title insurance cost?
It can influence examination fees and endorsement needs.
9. Is title insurance a one-time payment?
Yes, premiums are paid once at closing.
10. Does the owner’s policy expire?
No, it lasts as long as you own the property.
11. Can cash buyers skip title insurance?
Yes, but it is risky and not recommended.
12. Are closing fees included in this calculator?
Yes, estimated settlement and examination fees are included.
13. Is this calculator legally binding?
No, it provides estimates only.
14. Can investors use this tool?
Yes, it works for residential and investment properties.
15. Should I recalculate if prices change?
Yes, always recalculate if property value or loan amount changes.
Conclusion
The Texas Title Insurance Premium Calculator is an essential planning tool for anyone involved in a Texas real estate transaction. By estimating premiums, discounts, endorsements, and closing fees in advance, it removes uncertainty and helps you budget with confidence. Whether you are buying, refinancing, or paying cash, this calculator gives you clarity, transparency, and peace of mind before closing day.