Virginia

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 $100)

Amount of Insurance Cost Factor Plus On Amount Over
Up to $250k $2.73/$1k -- --
$250,001 to $500,000 $726.00 $2.59/$1k $100k
$500,001 to $1 million $1,400.00 $2.38/$1k $500k
$1,000,001 to $5 million $2,600.00 $1.58/$1k $1 million
$5 million+ $7,600.00 $1.47/$1k $5 million

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

250 x $2.73 = $273.00
250 x $2.59 = $1,036.00
100 x $4.50 = $450.00

Grand Total = $1,547.00

View purchase rates