A Gainesville property is being refinanced with a new loan amount of $280,000. The existing lender's title insurance policy was for $250,000. Using Florida's reissue rate of $2.00 per $1,000 for the additional coverage, what is the cost for the new lender's policy?
Correct Answer
A) $60.00
The reissue rate applies only to the additional coverage needed: $280,000 - $250,000 = $30,000 additional coverage. ($30,000 ÷ $1,000) × $2.00 = 30 × $2.00 = $60.00. Option B is incorrect ($500 would be for $250,000 at $2.00 per $1,000). Option C is incorrect ($560 would be for $280,000 at $2.00 per $1,000). Option D is incorrect ($1,610 would be for $280,000 at the full rate of $5.75 per $1,000).
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