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Closing costs can be a bit confusing for pretty much anybody, whether you are a new homebuyer, an experienced one or a refinancing homeowner.
On this page we will give you everything you need to know about closing costs in Florida as well as a calculator you can use to estimate what your closing costs are going to be.
What is the Average Closing Cost Percentage in FL?
The average closing costs can range from 2% to 5% of the total loan amount.
In Florida, the average closing cost amount is $8,550 for a $375,000 mortgage. That is around 2.3% of the loan amount and a few thousand more than the national average of $6,800.
What Exactly are Closing Costs?
Closing costs are basically expenses that come with the mortgage loan processing process. They include fees such as loan origination fees, appraisal fees, survey fees, title insurance fees, taxes and others.
Since mortgage loans are offered by lenders, closing costs are also charged by and paid to lenders.
Factors That Will Affect Closing Costs
Not all lenders have the same items on their closing costs so you should expect that value to vary wildly from one lender to another. Also, the location of your house will play a role in determining how much you will pay.
On top of that, appraisers, surveyors and other third parties charge differently for different areas. If you want a more accurate Florida closing costs estimate, contact us at Moreira Team and we will give you a breakdown of each item based on your type of loan, property, and location.
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Who Pays Closing Costs In FL?
In Florida, both the buyer and the seller have their own set of closing costs to pay. The division of these costs can be negotiated between the parties, but traditionally, each have their set of costs to pay. Here’s a general breakdown.
Typically paid by the Seller:
- Real Estate Agent Commissions
- Title Transfer Tax or Warranty Deed
- Owners Title Insurance
- Attorney Fees
- HOA Transfer Fees
- Prorated Property Taxes and HOA Dues
- Any Negotiated Repairs or Credits
- Outstanding Mortgages or Liens
Typically paid by the Buyer:
- Lender’s Title Insurance
- Appraisal Fees
- Origination Fees and Discount Points
- Credit Report Fee
- Prepaid Expenses
- Recording Fees
- Attorney Fees
- Home Inspection Fee
- Survey Fee
All of these costs are negotiable, and the specific division of costs should be clearly outlined in the purchase and sale agreement.
Buyers and sellers should consult with their real estate agents or attorneys to ensure they understand all the costs involved in the transaction.
What are the Seller’s Closing Costs in
If you need help with this, our Florida mortgage experts can help you with anything to do with closing costs.
It’s always a good idea for both buyers and sellers to review their closing disclosure or settlement statement carefully and ask questions if there are any unclear charges. This ensures that all parties understand what they’re paying for and can avoid last-minute surprises.
It is worth mentioning that in Florida you have the option to pay all or part of the costs when making your down payment.