Florida Closing Costs For Homebuyers: What You Pay And Why
Florida closing costs include state taxes that buyers in other states never see. Here is what each line item is, which ones depend on your loan amount, and how to plan your cash to close.
Taxes And Fees Set By The State
When you buy with a mortgage, Florida charges two taxes based on the loan amount. Documentary stamp tax on the mortgage note is $0.35 per $100 of the loan. A nonrecurring intangible tax on the mortgage is $2.00 per $1,000. Recording fees are added as the documents are filed with the county clerk.
Here is an illustration only, not a quote. On a $320,000 mortgage, doc stamps on the note would be $1,120 and the intangible tax would be $640, a combined $1,760 before any other costs. Actual costs depend on your loan, and your lender will give you exact figures on your Loan Estimate.
Doc stamps on the deed are a separate charge, based on the sale price, and the seller customarily pays them. Customs vary and everything is negotiable, so confirm who pays what in your contract. The Florida Department of Revenue publishes the current documentary stamp tax details.
Where Closing Costs Come From
Lender Costs
Origination or underwriting fees, the appraisal, the credit report, and any discount points you choose to buy down your rate.
Title And Settlement
Title insurance, whose premium rates are regulated by the state, plus the title agent’s settlement fees, lien searches and recording fees.
Prepaids And Escrows
The first year of homeowners insurance, prepaid interest and an escrow cushion for property taxes and insurance. These can be a large share of cash to close.
Inspections And Survey
Home inspection, wind mitigation or 4-point reports, termite inspection and a survey, if you order them. These are often paid outside closing.
HOA And Condo Fees
Transfer or capital contribution fees, prepaid dues and estoppel certificates, which vary by association.
Flood Insurance
If the home is in a mapped flood zone, the first year of flood insurance is typically due at closing too.
How To Estimate Your Cash To Close
- Ask a lender for a Loan Estimate before you make an offer, not after
- Add your down payment, closing costs and prepaids to get cash to close
- Get homeowners and flood quotes early, since they drive the prepaids
- Ask what seller concessions your loan allows and write them into the offer
- Compare Loan Estimates from more than one lender line by line
Read The Loan Estimate
Federal rules require lenders to give you a standard Loan Estimate shortly after you apply. Use it to compare costs between lenders, and compare it with your closing disclosure before you sign.
Closing Costs Vary By County. Start With Your Region
Taxes, insurance and customs differ across Florida. Explore a regional guide to see what matters where you are buying.
Tampa Bay
Jacksonville
Daytona And Volusia
South Florida
Central Florida
Florida Closing Cost FAQs
How much are closing costs when buying a home in Florida?
Buyer closing costs commonly run somewhere around 2% to 5% of the purchase price, depending on the loan, the county, the insurance and tax prepaids, and what is negotiated with the seller. Your lender’s Loan Estimate shows the actual figures for your loan.
What are Florida documentary stamps and the intangible tax?
When you finance a purchase in Florida, the state charges documentary stamp tax on the mortgage note, at $0.35 per $100 of the loan amount, and a nonrecurring intangible tax on the mortgage, at $2.00 per $1,000. Both are based on the loan amount, so a bigger loan costs more.
Who pays for title insurance in Florida?
Title insurance premium rates are set by the state, so the price of an owner’s policy does not vary between title companies. Who pays for the owner’s policy is customary in some counties and negotiable everywhere, so check your contract. The lender’s policy is usually paid by the buyer.
Are prepaids and escrows closing costs?
They are cash due at closing, but they are not fees. Prepaids cover items such as the first year of homeowners insurance, prepaid interest and an initial escrow deposit for taxes and insurance. They often make up a large part of the cash you need.
Can the seller pay my closing costs?
Often yes, through a seller concession written into the contract. Each loan type limits how much the seller can contribute, and the limits depend on the loan and the down payment, so confirm with your lender before you negotiate.
Ask William About Your Closing Costs
William “Will” Willis, Branch Manager (NMLS #1514031), has more than 27 years of Florida mortgage experience. Call (904) 615-7720, email william@neomtg.com or use the form on our homepage.
This page is general information, not legal or tax advice, a loan offer or a commitment to lend. Taxes, fees and customs change and vary by county and contract, so confirm details with a title agent, an attorney and a lender. The dollar example is an illustration, not a quote. Loans are subject to credit approval and property eligibility. Mortgage services are provided by William Willis, NMLS #1514031. Verify licensing at the NMLS Consumer Access portal.