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Closing Costs if Buying a House in Florida

If you’re thinking about buying a home in Florida, you will learn that Florida closing costs are somewhat average in the nation. According to, Florida is the 17th-highest closing costs in the country.

While average closing costs range between 2 and 5 percent nationally. Average closing costs in Florida can be around 3% of the home’s purchase price.

That includes prepaids which is sort of your money. Prepaids are expenses that the homebuyer pays at closing, before they are due. Prepaids can include taxes, hazard insurance, flood insurance, interest. When you see ‘escrow money’ on your closing statement you should know that is where prepaids are kept. Closing costs can increase substantially if your loans has points. Essentially, points are paid upfront to the lender for reducing the interest rate. One point costs 1% of your loan amount. For example, on $200K loan you will pay $2K for one point to lower your interest. That’s why when you are looking at interest rates online, it is pointless to a degree because you don’t really know if advertised interest rate includes points in the pricing.

This means that for a typical middle-class family home purchase of $200,000, you can usually expect to pay $6,000 or less on closing costs and prepaids when you are buying a house with a mortgage. Elsewhere in the country, you may find yourself paying anywhere between $4,000 and $10,000 — or even higher — for a home of the same value.

It works differently when you are buying a house for cash as your closing costs go down drastically. For the same $200K home, you might be paying around $1000 or less for all closing costs and you don’t need to have an escrow account.

Julia Lysenko is here to help you find the perfect home and set your expectations right on your closing costs either you are buying or selling with a mortgage or for cash!

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