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Blog
Jan 07

What Title Insurance Costs: Title Grades Explained

Every couple of weeks, we’ll highlight a deal to show you what title insurance costs, as well as what happens behind the scenes to streamline the closing process. Right now, many residential and commercial property owners are taking advantage of historic low rates to refinance, whether their goal is to pull cash out, lower their payments, or shorten their terms.

From a title insurance cost perspective, refinances also offer the opportunity to save some money (reissue rate) on premiums if the prior mortgage was within 10 years. Our good friends at Fentin Goldman Turk & Davidoff LLP have been busy representing borrowers and lenders on their refinances.

The Deal

Here’s a simple breakdown of a Brooklyn two-family home that was just refinanced:

Kings County: Refinance for $800,000 (prior mortgage balance $400,000 within 10 years)

Title Insurance: $1,914.00
Title Fees: $600+
Mortgage Tax: $7,170.00
County Recording Fees: $500+
Title Grade: A

This was a smooth, efficient transaction, as predicted by the Title Grade.

Cornerstone Insight

The Title Grade is an internal tool we developed that’s based on the number of items that need to be “cured” (addressed) for a successful closing. We typically look at three criteria:

  • Number of items that need to be corrected, addressed, or further researched
  • Length of time to clear each item
  • Cost of clearing each item

The Title Grade tool offers several benefits for both parties:

  • Reveals potential issues that can complicate or delay closings
  • Helps eliminate surprises during the closing process
  • Provides useful information to buyers and sellers
  • Speeds up settlements
  • Mitigates risk for both parties
  • Tells buyers/developers what they potentially can’t do to a property
  • Informs buyers about liens against the property early in the process

If you have any questions about Title Grades or title insurance or would like to discuss an upcoming or potential transaction, please contact us.