Delaware Refinancing Settlement Costs
As a Delaware real estate attorney, I’m often asked to give an estimate of what the closing costs will be for a refinancing settlement. One of the costs that applies to every refinancing settlement in Delaware is the cost of a lender’s title insurance policy. Calculating the amount it will cost you for title insurance is pretty easy. The formula is $2.50 per thousand for the first $100,000.00 of the mortgage amount, and $2.00 per thousand for the balance of the mortgage.
Here’s an example of how it works. Let’s assume you’re getting a mortgage in the amount of $260,000.00. For the first $100,000.00, it’s $2.50 per thousand. There are 250 thousands in $250,000.00 and so the cost for the first $100,000.00 is $250.00. For the remaining $160,000.00 ($260,000.00 - $100,000.00), you can see that there are 160 thousands in $160,000.00. Multiply 160 times $2.00, and you get $320.00. The final step is to add $250.00 and $320.00, and you end up with $570.00 as the total cost for lender’s title insurance for a mortgage of $260,000.00.
If you purchased title insurance within the last 5 years, you may qualify for a 40% discount. Be sure to ask your settlement attorney to let you know whether you qualify for what’s known as a “re-issue rate.”
