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Title Insurance Calculator

Estimate the title insurance premium collected at closing — both the owner's policy (protects you) and the lender's policy (protects the bank). Includes the simultaneous-issue discount.

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$
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expressed as % of purchase price

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%

discount when both policies issue together

Total title insurance

$3,204

collected at closing

Owner’s policy

$2,475

protects your equity

Lender’s policy (full)

$1,823

Lender’s policy (discounted)

$729

with simultaneous-issue discount

How title insurance works

Title insurance is a one-time premium paid at closing that protects against title defects (forged deeds, unknown heirs, missed liens, recording errors). The lender requires its own policy to protect the loan amount; the owner’s policy is optional but strongly recommended.

Rates vary by state — some are heavily regulated (TX, NM, FL) with set rates; others (CA, IL, NY) negotiate. When both policies issue at the same closing, lenders typically discount the lender’s premium 40–80%. Compare quotes on the loan estimate.

How to Use

  1. Enter the purchase price and loan amount.
  2. Enter your state's owner's title insurance rate per $100 of purchase (commonly 0.40–0.70%).
  3. Enter the lender's title rate per $100 of loan amount.
  4. Enter the simultaneous-issue discount typical in your state (often 40–80% off the lender's policy when both issue together).
  5. Read the total title insurance — this lands in the closing cost section of the loan estimate.

Frequently Asked Questions

Do I need both owner's and lender's title insurance?

The lender's policy is required by every mortgage lender. The owner's policy is optional but strongly recommended — it's a one-time premium that protects your equity for as long as you own the home.

How are title insurance rates set?

It depends on the state. Some states (TX, FL, NM) have promulgated rates set by the insurance commissioner. Others (CA, IL, NY) allow underwriters to compete. In competitive states, shop quotes — savings can be significant.

What does title insurance actually cover?

Forged deeds, unknown heirs claiming an interest, undisclosed liens, recording errors, and most other title defects discovered after closing. It does not cover liens or claims you knew about and accepted.

Who pays for title insurance — buyer or seller?

Custom varies by state and even by region. In many areas, the buyer pays the lender's policy and the seller pays the owner's policy. In others, the buyer pays both. The closing disclosure shows who pays each line.

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