Loan Estimate Challenges
Texas’s Biggest LE Challenges

With 254 counties, Texas offers numerous opportunities for tax or fee variability, and thus, its fair share of LE challenges.

Numerous Endorsements

Texas is a state well known for the unusually high number of endorsements customarily included in a typical residential real estate transaction. The T-3 (R-24), T-17, T-19, T-30, T-36 are all commonly used here, among others. 

The T-19.1

There is also the T-19.1, which is solely for the owner’s policy. This differs from the typical flat fee endorsement in that it can involve a percentage of the policy…which can add up to 25% of the overall title insurance premium. In a state known for its higher-than-average title insurance premiums, missing this detail in some cases could result in a variance of thousands of dollars. 

Title Insurance, Transfer and Mortgage Taxes

In Texas all rates are regulated and are virtually the same amongst the title underwriters. Also, in Texas, there are no transfer or mortgage taxes.

The R-8 Credit

Cash-out refinance transactions have a different premium than other transactions. This takes the form of the R-8 credit, a discount on the title insurance premium based upon the age of prior policy and combined lien payoff amounts. When one considers that Texas is home to some of the more expensive title premiums in the country, it goes without saying that calculating the R-8 incorrectly can be extremely costly.

Recording Fees

While most of Texas’ 254 counties employ a statewide recording fee schedule, over 30 of those counties do deviate from that schedule.


Last edited July 14, 2023

LodeStar Software Solutions prides itself on being the most accurate provider of the most up-to-date closing fees in the mortgage industry—so much so that we guarantee those rates. However, unlike the closing fee data we provide our clients through our product, LodeStar can only guarantee the accuracy of the content delivered through LE Challenges at the time of publication.LE Challenges is published solely for marketing and advertising purposes to provide an example of the depth and breadth of our commitment to providing accurate closing fees to its clients. While we do our best to update the content of LE Challenges as often as possible, the data shared here is in no way intended to serve as data to be relied upon in the generation of an actual Loan Estimate or any other element of a mortgage transaction.



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