In the state of Texas, when you buy or refinance a home, the title insurance is regulated by the state. In other states, you can shop around to different title companies to see who will give the better rate. Not in Texas. We make it easy for buyers and sellers. The thing we look for is Customer Service since the title policies are all the same price.
With that, the rates in Texas have been the same for nearly 20 years. No increases until now. Effective on May 1, 2013, Texas Title Insurance Policies will see a 3.8% increase. That's not that bad considering the cost of inflation over the years.
Here are a few examples of what that means:
Sales price of $100,000 - today's policy is $843. The increase will be $875.
Sales price of $150,000 - today's policy is $1110. The increase will be $1152.
Sales price of $200,000 - today's policy is $1377. The increase will be $1429.
Sales price of $500,000 - today's policy is $2979. The increase will be $3091.
Sales price of $1,000,000 - today's policy is $5649. The increase will be $5861.
As you can see, we're not talking hundreds or thousands of dollars for this change. Also, remember that the increase is a one-time fee, not a monthly fee. If you bought a $500,000 house and paid the additional $112 for your policy, over a 30 year mortgage, you're paying a mere $0.31 a month, or a penny a day.
Basically, we're talking pennies, but the increase was necessary because it might just be pennies on one transaction, but over the tens of thousands of real estate transactions across the state in a year in Texas, those pennies will add up substantially.
If you have a sales price in between these numbers, here's a calculation you can do in multiple steps:
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Copyright© 2013 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* Texas Title Insurance Increases 3.8% May 1- First Increase in 20 Years * was first published on donnahomesblog.com.