How Much Are Closing Costs for Buyers in Florida? A Full Breakdown
Quick Summary
- Buyer closing costs in Florida commonly run a few percentage points of the purchase price, not including the down payment.
- Financed buyers also pay a state documentary stamp tax of $0.35 per $100 on the loan and an intangible tax of 0.2 percent of the loan amount.
- Prepaid items, such as the first year of homeowners insurance and escrow deposits, can add significantly to cash needed at closing.
- Cash buyers avoid most lender fees and mortgage taxes but still pay title, insurance, and other costs.
How Much Are Closing Costs for Buyers in Florida?
Buyer closing costs in Florida typically range from about 2 to 5 percent of the purchase price for financed purchases, depending on the loan, insurance costs, and negotiated terms. Costs include lender fees, title charges, state mortgage taxes, prepaid insurance and taxes, inspections, and recording fees. Cash buyers generally pay less.
Buyer Cost Breakdown
|
Cost |
What It Is |
Applies To |
|---|---|---|
|
Loan origination and lender fees |
Charges for underwriting and processing |
Financed purchases |
|
Appraisal and credit report |
Lender-required valuation and credit check |
Financed purchases |
|
Documentary stamp tax on the note |
$0.35 per $100 of the loan amount |
Financed purchases |
|
Intangible tax on the mortgage |
0.2% of the loan amount |
Financed purchases |
|
Lender's title insurance |
Protects the lender's interest |
Financed purchases |
|
Owner's title insurance |
Protects your ownership. Customs vary by county, and it is negotiable |
Varies |
|
Title search and settlement fees |
Title company or attorney services |
All purchases |
|
Recording fees |
County charges to record documents |
All purchases |
|
Prepaid homeowners insurance |
Often the first year's premium at closing |
All purchases with coverage |
|
Escrow deposits |
Initial reserves for taxes and insurance |
Financed purchases |
|
Inspections and survey |
General, roof, wind mitigation, termite, survey, and more |
All purchases |
|
HOA or club fees |
Transfer, capital contribution, or application fees |
Properties with associations |
Worked Example: $1,000,000 Purchase With an $800,000 Loan
These amounts are illustrative only. Your lender and title company will provide exact figures in your Loan Estimate and Closing Disclosure.
|
Item |
Illustrative Amount |
|---|---|
|
Documentary stamp tax on the note ($0.35 per $100) |
$2,800 |
|
Intangible tax (0.2% of loan) |
$1,600 |
|
Lender fees, appraisal, credit |
[UPDATE: lender quote] |
|
Title insurance, search, and settlement fees |
[UPDATE: title company quote] |
|
Prepaid homeowners insurance |
Varies widely, especially at the coast |
|
Escrow deposits for taxes and insurance |
Varies by closing date |
|
Inspections and survey |
Varies by property |
Because coastal insurance premiums can be high, prepaid insurance is often the largest surprise in a buyer's cash-to-close figure.
Step-by-Step: How to Budget for Closing
Step 1: Request a Loan Estimate Early
Ask two or three lenders for a written Loan Estimate. It itemizes lender fees, taxes, and prepaid items.
Step 2: Get an Insurance Quote
Your homeowners and flood insurance premiums are part of cash to close, and coastal premiums can be significant.
Step 3: Ask Your Title Company for an Estimate
Request an estimate of title insurance, search fees, recording fees, and settlement charges.
Step 4: Add Inspections, Survey, and Association Fees
Budget for your inspection suite and any HOA or club transfer fees.
Step 5: Set Aside a Cushion
Plan for a buffer above your estimate for last-minute items or prorations.
Step 6: Review Your Closing Disclosure
By law, your lender must provide the Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate and ask about any changes.
Ways to Reduce Closing Costs
- Compare lender quotes and ask which fees are negotiable.
- Negotiate seller concessions in your offer, where the market allows.
- Shop insurance carefully and ask about wind-mitigation credits.
- Close later in the month to reduce prepaid interest.
- Ask your title company to explain each fee and whether it is optional.
Frequently Asked Questions
Who pays closing costs in Florida, the buyer or the seller?
Both. Buyers typically pay lender-related costs, mortgage taxes, and prepaids. Sellers customarily pay the deed documentary stamp tax and commissions. Many items are negotiable.
What is the Florida intangible tax?
It is a one-time state tax on a mortgage equal to 0.2 percent of the loan amount, paid by the borrower at closing.
Do cash buyers pay closing costs in Florida?
Yes, though fewer. Cash buyers avoid lender fees and mortgage taxes but still pay for title services, insurance, inspections, and recording.
Can I roll closing costs into my loan?
Some programs allow certain costs to be financed, but it increases your loan balance. Speak with your lender about what is permitted.
How early should I budget for closing costs?
Start as soon as you begin shopping. Closing costs affect how much you need in savings beyond your down payment.
Know Your Number Before You Offer
A clear budget makes your offer stronger. I'm Iva Zovko, a Realtor with Keller Williams Atlantic Partners Realty, and I help buyers in Ponte Vedra Beach, Jacksonville Beach, and Atlantic Beach plan every cost from offer to closing. [Schedule a private consultation.]
This content is for general information only and is not financial or legal advice.
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