Refi Example for Lenders Policy

Loan amount $200,000
For the first $100,000 divide by 1,000 = 100
100 multiplies by 2.9- $2.90
The remaining $100,000 divides by 1,000 = 100
100 multiplied by 2.4 = $240

Adding the two together gives you your lenders coverage of $530 ($290+ $240 = $530)

Purchase: Example for Lenders and Owners policy

Purchase with sales price of $250,000 and loan amount of $200,000

Calculating owner’s policy

$100,000 divided by 1,000 = 100 multiplied by 3.9 = $390
$150,000 divided by 1,000 = 150 multiplied by 3.4 = $510

Adding the two together gives you your owners coverage of $900 ($390 + $510 = $900)

If owner’s insurance is purchased, then Lenders Insurance Policy on $200,000 can and will be issued for only $50
Total insurance on MF purchase of $250,000 would then be $950.00

(Based on current 2008 rates)

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