Florida Home Loan Closing Costs - 2013 Survey Results
Posted by Benjamin Dona on Thursday, July 31st, 2014 at 7:04pm.
Bankrate has released its annual survey on home loan closing costs* again. In Florida, the news was actually better than expected. For 2013, the closing costs on a $200,000 home purchase averaged $2,517, a fall of $323 over last year's cost of $2,840. And, while still expensive, Florida's number dropped it from No. 4 in 2012 to No. 9 on last year's list.
The survey found that the national average for origination and third-party fees this year totaled $2,402, up 6% ($138) from $2,264 in 2012. The results indicated the fees charged directly by lenders went up 8.4%, while fees charged by third parties for things such as appraisals and title insurance and title closing fees rose 3.2%.
Most interesting was the main reason given by the lenders for the cost increases - the increase in expenses to implement all the new mortgage regulations imposed by the Consumer Financial Protection Bureau. Go figure on this one!
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." Some lenders may also offer you lower closing costs but charge you a higher interest rate and vice versa. One useful tool to compare apples to apples is to look at the APR on the form, or the annual percentage rate. The APR incorporates closing costs into the interest rate you are quoted on the mortgage to show you the annual cost of the loan.
This year's top five states included:
- Hawaii - $2,919
- Alaska - $2,675
- South Carolina - $2,658
- California - $2,639
- New Mexico - $2,566
The bottom five states included:
- Michigan - $2,203
- Washington - $2,208
- Kansas - $2,193
- Missouri - $2,188
- Wisconsin - $2,119
The study compared charges for mortgage loan origination and other lender fees, as well as third-party fees for services such as appraisal, credit report and flood certification 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 costs for title insurance, title search, real estate taxes, property insurance, HOA and Condominium association fees, interest and other 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.
*Your total actual closing costs will be much higher as you will have to also add in the costs for the items that were excluded from the survey.
Survey Update - 8/4/2014
Funny how things go sometimes. No sooner do we report the 2013 results, then Bankrate releases their 2014 survey. As they say, timing is everything. So, here are the 2014 home loan closing costs results too.
2014's top five states included:
- Texas - $3,046
- Alaska - $2,897
- New York - $2,892
- Hawaii - $2,808
- Wisconsin - $2,706
The 2014 bottom five states included:
- Washington, D.C. - $2,402
- Ohio - $2,392
- Missouri - $2,387
- Tennessee - $2,366
- Nevade - $2,265
The survey found that the national average for origination and third-party fees for 2014 totaled $2,539, up another 6% year over year. The results indicated the fees charged directly by lenders went up 9%, while fees charged by third parties for things such as appraisals and title insurance and title closing fees rose 1%. Lenders were more specific this year in their reason for the cost increases, laying the blame squarely on the the Qualified Mortgage (QM) regulations and the increase in time and man-hours needed to complete the loan approval process under its new guidelines. And again we say, "go figure."
In Florida, the news was worse than expected. For 2014, total closing costs averaged $2,648, a rise of $131.00. Florida's number dropped it from No. 9 to No. 8 on the 2014 list.
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