Is there a title policy discount for refinancing?

Is there a title policy discount for refinancing?

The Texas Department of Insurance (TDI) sets the premiums for title insurance policies issued for property in the State of Texas.  TDI does allow discounted rates for refinances of existing mortgages that were previously insured.  The amount of the discount is based on the length of time between the mortgage being refinanced and the new mortgage, as well as the payoff balance on the mortgage being refinanced.

The discount is calculated by multiplying the base policy premium for the principal balance of the payoff loan by a percentage to come up with the credit, and then subtracting that credit from the base policy premium for the amount of the new loan.  For refinances within the first two years of the existing mortgage, the percentage for calculating the credit is 40%.  The percentage decreases by 5 for each subsequent year to year 7 (at 15%).   After year 7 the discount does not apply.

If you are thinking of refinancing and would like additional information about this discount, please contact us.

Fidelity National Title, 1512 Heights Blvd., Houston, TX 77008 (713) 529-8800