TIRSA Refinance Rates in Plain English: Sections 12, 12A and 12B, and Why New York Has No Reissue Rate

A New York refinance loan policy is priced under Section 12 of the TIRSA Rate Manual, Seventh Revision, effective October 1, 2024. The base refinance rate is 50% of the loan rate for a policy of $475,000 or less and 70% for a larger policy. If the property is an owner-occupied one-to-four family home, condominium unit or co-op unit, Section 12A cuts that refinance premium by a further 30% when the borrower stays with the same lender, and Section 12B cuts it by 15% when the borrower moves to a new lender.

These rules are statewide. They apply in New York City, Westchester County and the rest of the state; only the underlying loan rates differ between TIRSA Zone 1 and Zone 2. For the rate brackets themselves and how the purchase premium is calculated, see what title insurance costs in NYC and Westchester.

Why there is no “reissue rate” in New York

In many states, a borrower who refinances gets a “reissue” credit for a recent prior policy. The New York manual does not use that term or offer a separately named reissue rate. The same idea is built into Section 12 instead: the discount is measured against the amount already in the chain of title, meaning the price on the borrower’s deed or the face amount of open mortgages, not against a prior policy as such.

If you see “Section 14,” “14A” and “14B” in older material, that is the same rule under earlier numbering. Underwriter bulletins from 2006, 2011 and 2015 refer to Section 14. The 14A and 14B discounts took effect August 1, 2015 in the Fifth Revision, following the Department of Financial Services (DFS) approval announced May 12, 2015. The Seventh Revision carries them as 12A and 12B.

Section 12: the base refinance rate

Section 12 covers any “Mortgage Refinance Transaction,” which the manual defines as a mortgage loan whose proceeds are not used to buy the property. The definition expressly includes consolidating existing mortgages to secure new money, and subordinate mortgages such as a second mortgage. Section 12 is not limited to homes; it applies to commercial property too.

Refinance policy amount Refinance rate
$475,000 or less 50% of loan rate
Over $475,000 70% of loan rate

Three rules control the calculation (Section 12(B)):

  • The discount has a ceiling. The refinance rate applies only up to the greatest of (1) the full consideration on the borrower’s vesting deed, (2) the face amounts of open mortgages of record on the same property, or (3) the amount of insurance on an existing mortgage that is provided to the title insurer. Coverage above that figure is charged at the full loan rate.
  • The 10-year limit. A vesting deed, existing mortgage or existing policy dated more than ten years before the application cannot be used to set the ceiling.
  • The percentage depends on the whole policy amount. It is not layered. A $500,000 policy is charged 70% on all of it, not 50% on the first $475,000. That creates a cliff just above $475,000 (see the examples).

A later conveyance made without payment of New York State transfer tax, such as a transfer to a spouse for no consideration, does not cut off the earlier deed’s consideration.

Sections 12A and 12B: the extra residential discounts

12A 12B
Lender Same holder Different holder
Premium 70% of refinance rate 85% of refinance rate
Extra discount 30% 15%
10-year limit Does not apply Does not apply

Both sections require all of the following:

  • Residential, owner-occupied property. A one-to-four family dwelling, residential condominium unit or residential co-op unit, occupied by the owner as a natural person. An investment property the owner does not live in does not qualify. Under Section 1, part of the dwelling may be used as an office.
  • An existing loan being refinanced. The new loan must replace an existing loan or be consolidated with it. A home with no mortgage gets no 12A or 12B discount, though Section 12 can still apply if its own conditions are met.
  • Same people, same title, same property. The new loan must be signed by the same persons or some of them, with no one added; the source of title must be the same; and the property must be the same or part of it, with nothing added.

“Same lender” means the holder of the existing loan. An affiliate or successor by merger of the existing holder counts as the same lender, so that refinance falls under 12A, not 12B. Stewart’s examples for the 2015 rules work through assignments, MERS and multiple loans. One example: where a second-mortgage lender assigns its loan to the first lender, the consolidated refinance gets 12B, not 12A.

The biggest practical effect is the waiver of the 10-year limit. An owner-occupant who bought in 2010 still gets the refinance rate measured from that 2010 deed, plus the 12A or 12B discount. DFS’s consumer title insurance page still describes only the ten-year refinance discount, so readers comparing sources should rely on the manual.

Worked examples (Zone 2)

These examples are illustrative. They use the Zone 2 loan rates in the cost guide ($327 for the first $35,000, then $5.27, $4.31, $3.46, $3.14 and $2.90 per $1,000), charge each $1,000 or fraction as a full unit, and round to whole dollars at the end (Section 2(E)). Endorsements and other charges are excluded.

Example 1: $400,000 refinance, home bought in 2019 for $650,000. The ceiling is $650,000, so the whole $400,000 qualifies.

Rate Premium
Full loan rate $1,660
Section 12 (50%) $830
12B, new lender $705
12A, same lender $581

If the borrower rents the house out and does not live there, only the Section 12 rate of $830 is available.

Example 2: the $475,000 cliff. A $475,000 policy at 50% of $1,919.05 costs $960. A $500,000 policy costs 70% of $2,005.55, or $1,404. The extra $25,000 of coverage adds $444.

Example 3: new money above an old purchase price. An owner-occupant bought in 2010 for $600,000 and has no deed, mortgage or policy dated within the last ten years. She refinances for $750,000 with a new lender.

  • Section 12 alone would not apply, because the 2010 deed is outside the 10-year limit. Full loan rate: $2,791.
  • Under 12B the limit is waived. The first $600,000 is charged at 70% (the policy is over $475,000) of $2,319.55, times 85%, which is $1,380.13. The $150,000 above the ceiling is charged at the full rate, $471.00. Total $1,851.

The excess calculation follows Stewart’s 2015 bulletin, which states that “liability above the discounted insurance amount is calculated at the full premium rate.” Confirm the figure with the issuing underwriter’s rate calculator.

Section 13: modifications without new money

A modification is not a refinance. When an existing mortgage is modified, no additional debt is secured, the property is the same and ownership has not changed, Section 13 prices a modification policy at 50% of the loan rate. The amount of insurance generally cannot be less than the unpaid principal. The rate applies even if the mortgage holder has changed, and it is not limited to residential property. A CEMA that adds new money is a consolidation, which the manual treats as a Section 12 refinance.

What borrowers, lenders and attorneys should check

  1. Tell the title company who holds the existing loan. That decides 12A versus 12B. Check for assignments and mergers; the servicer is not always the holder.
  2. Confirm owner occupancy and the borrowers. Adding a co-borrower to title, or refinancing a property the owner no longer occupies, removes the 12A and 12B discounts.
  3. Supply the vesting deed and prior loan policy. They set the ceiling. A higher purchase price or open mortgage amount means more coverage at the discounted rate.
  4. Expect the TIRSA rate on the loan policy. The underwriter deviations described in the cost guide lower owner’s premiums, not loan premiums.
  5. Read the title bill. The refinance premium is one line; endorsements, recording and mortgage recording tax are separate. See the title bill explained.

Official sources

Related guides

Korvane Title is preparing to launch in New York. It is not licensed as a title insurance agent and does not accept title orders. Content on this site is general information, not legal advice.