You May Qualify For a Discount On Your Delaware Refinancing Settlement
If you’re thinking about refinancing your mortgage, part of the closing costs you’ll have to pay is the premium for lender’s title insurance. The good news is that you may qualify for a nice discount.
In Delaware, the amount you’ll be charged at settlement for lender’s title insurance depends on the amount of your new mortgage. Here’s how it’s calculated. On the first $100,000 of your new mortgage, the premium is $2.50 per thousand. For everything over $100,000, the rate is $2.00 per thousand. Let’s look at the following example.
Say your new mortgage will be $220,000. On the first $100,000, you’ll pay $250 ($2.50 x 100). On the next $150,000, you’ll pay $300 ($2.00 x 150). The total cost will be $550 ($200 + $300).
If you took out your current mortgage within the last 5 years, you’re entitled to a discount of 40% off the cost, so instead of paying $550, you’ll pay $330. Please note: The actual savings would be reduced if the original principal balance of your old mortgage was less than the amount you’re borrowing on the new mortgage. For example, if your old mortgage was for $210,000, the 40% discount would only apply to the first $210,000 of your new mortgage, and you’d pay the regular rate (with no discount) on $40,000 (the difference between the new mortgage amount and the old mortgage amount). If you have any questions about title insurance, closing costs, or any other aspect of refinancing, speak to an experienced Delaware real estate attorney.
