Title Premium Calculator
Buying a home involves several upfront costs, and one important expense is the title insurance premium. This premium ensures your property’s title is protected from legal disputes or ownership claims. Understanding your premium costs upfront helps you budget better for closing.
Our Title Premium Calculator offers a simple way to estimate premiums based on your property value, mortgage amount, coverage type, rate tiers, discounts, and fees. Whether you are a first-time homebuyer or a seasoned investor, this tool helps you plan effectively for title insurance costs.
What Is a Title Premium?
A title premium is the fee you pay to obtain title insurance. It covers protection for both the property owner and the lender against risks that may affect the title after closing. This premium varies depending on factors such as property value, loan amount, coverage selected, and state-specific rates.
How to Use the Title Premium Calculator
- Enter Property Value:
Input the total value of the property you are purchasing. - Enter Mortgage Amount:
Enter the loan amount you are borrowing to finance the property. - Select Coverage Type:
Choose from Basic, Standard, Enhanced, or Homeowner’s Policy coverage. Higher coverage means more protection but higher premiums. - Select Rate Tier:
Pick the applicable rate tier reflecting risk level:- Tier 1 (Standard)
- Tier 2 (Preferred)
- Tier 3 (Premium)
- Tier 4 (High Risk)
- Simultaneous Issue Discount:
Indicate if you are purchasing owner’s and lender’s policies simultaneously for a lender discount. - Enter Title Search Fee:
Add any title search fees applicable (default $150). - Enter Closing/Settlement Fee:
Include closing fees (default $350). - Calculate:
Click the Calculate button to see:- Owner’s Premium
- Lender’s Premium (adjusted for discount if applicable)
- Title Search Fee
- Closing Fee
- Total Title Premium
- Reset:
Use the Reset button to clear all fields for a new calculation.
Example Calculation
Suppose you buy a home valued at $400,000 with a mortgage of $320,000. You select Standard Coverage with a rate tier of Tier 1 (0.525%), and you opt for the Simultaneous Issue Discount. Title search fee is $150, closing fee is $350.
- Coverage Multiplier: Standard = 1.15
- Owner’s Premium: 400,000 × 0.00525 × 1.15 = $2,415
- Lender’s Premium: 320,000 × 0.00525 × 0.75 = $1,260
- Title Search Fee: $150
- Closing Fee: $350
- Total Premium: $2,415 + $1,260 + $150 + $350 = $4,175
This comprehensive estimate helps you prepare for closing costs.
Why Use This Calculator?
- Save Time: Get instant premium estimates without complex formulas.
- Customized Options: Tailor calculations based on coverage and risk tiers.
- See All Fees: Includes search and closing fees for total cost clarity.
- Discount Awareness: Automatically adjusts lender premiums with discounts.
- Easy to Use: Clean interface guides you step-by-step.
Frequently Asked Questions (FAQs)
1. What is the difference between owner’s and lender’s premium?
Owner’s premium protects you; lender’s premium protects your mortgage lender.
2. What does coverage type affect?
Coverage type determines the level of protection and affects the premium cost.
3. How do rate tiers work?
Rate tiers reflect risk levels; higher risk means higher premiums.
4. What is a simultaneous issue discount?
A discount on the lender’s premium if both policies are purchased together.
5. Are title search and closing fees always required?
Typically yes, but amounts vary by provider and location.
6. Can I enter custom fees?
Yes, simply input your specific fees in the respective fields.
7. Does mortgage amount affect the lender’s premium?
Yes, lender’s premium is calculated based on mortgage amount.
8. Can this calculator be used for refinancing?
Yes, just adjust the mortgage amount accordingly.
9. Why is the owner’s premium multiplied by a coverage multiplier?
Different coverage types increase protection and premium proportionally.
10. What happens if I don’t select simultaneous issue?
Lender’s premium will not get the 25% discount.
11. Can I use this calculator in any state?
Yes, but ensure you select the correct rate tier based on your state or lender’s info.
12. How accurate is this estimate?
It’s a close estimate; actual premiums may vary depending on the insurer.
13. What if I enter invalid values?
The calculator will prompt you to correct input errors.
14. Are there other fees besides these included?
Sometimes additional fees may apply; check with your title insurer.
15. Can I save or print my results?
This calculator doesn’t have save/print features but you can manually record your results.
Conclusion
Estimating your title insurance premium doesn’t have to be complicated. With our Title Premium Calculator, you get a clear, detailed breakdown of costs tailored to your property, loan, and coverage preferences. Use this tool to prepare your budget and move confidently toward your home purchase or refinance closing.