District of Columbia

Lender's Policy

The lender's policy is also known as a "loan policy" and is required for all transactions, purchases and refinances alike, since lenders must also protect against title related defects.

A lender wants to ensure that the loan they are issuing is protected by title insurance and their investment is covered. A lender's policy protects the mortgage holder (the institution that owns the mortgage).

If there is a fault in title that results in a loss, the mortgage holder will be paid back. You will need to order a new lender's policy to refinance your property.

READ MORE: Why lenders require title insurance

Refinance Policy
(minimum premium $101)

Amount of Insurance Cost Factor Plus On Amount Over
Up to $250k $2.70/$1k -- --
$250,001 to $500,000 $675.00 $2.34/$1k $250k
$500,001 to $1 million $1,260.00 $1.98/$1k $500k
$1,000,001 to $5 million $2,250.00 $1.62/$1k $1 million
$5 million+ $8,730.00 $0.75/$1k $5 million

Note: When calculating the cost of a policy, please keep in mind we use a tiered rate. So if the refinancing amount is $600k and a lender's title policy is purchased, the cost is calculated by multiplying:

250 x $2.70 = $675
250 x $2.34 = $585
100 x $1.98 = $198

Grand Total = $1,458

View purchase rates