Florida Home Closing Costs: 2010 Survey Results
Posted by Benjamin Dona on Tuesday, August 17th, 2010 at 6:19pm.
Bankrate has released its annual survey on home closing costs again this week. In Florida, the news was actually better than expected. For 2010, the closing costs on a $200,000 home purchase averaged $3,987, a rise of $381 over last year's cost of $3,368. And, while still expensive, Florida's number dropped it from No. 3 on last year's list to No. 12 this year.
The survey found that the national average for origination and third-party fees this year totaled $3,741, up 36.6% ($1,002) from $2,739 in 2009. The results indicated the fees charged directly by lenders went up 22.8%, while fees charged by third parties for things such as appraisals and title insurance and title closing fees rose 47.2%.
Most interesting was the main reason given for the cost increases - the new regulation that requires lenders to provide a Good Faith Estimate (GFE) of costs within 10% of what the actual final cost will be at closing. Previously, GFE's could fluctuate wildly without concern for accuracy.
Guess that just reaffirms what we've always said "buyers need to seriously shop for their mortgage loan and compare more than just interest rate quotes."
This year's top five states or cities included:
- New York - $5,623
- Texas - $4,708
- Utah - $4,605
- California: San Francisco - $4,566
- California: Los Angelas - $4,406
The bottom five included:
- Arkansas - $3,007
- North Carolina -$3,255
- Iowa - $3,261
- Montana - $3,298
- Wisconsin - $3,303
The study compared charges for loan origination fees, title and closing costs on a single family home purchase with a 20% down payment, good credit, and a 30 year fixed rate mortgage of $200,000. It excluded taxes, other governmental fees and prepaid items.
Another thing you need to remember if you're buying a home in Florida. The state has additional stamp tax fees that come into play. The first is the Documentary Stamp Tax on Deeds on the purchase of "any" home or condo. It runs $0.70 per hundred dollars of purchase price. The other two - the Documentary Stamp Tax on Notes ($0.35 per $100 of mortgage amount) and the Intangible Tax on Mortgages ($0.002 per dollar of mortgage amount) come into play if you are getting a mortgage to purchase your home or condo. These fees are part of the reason why Florida is considered a high closing cost state.
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