The Three Buckets of Closing Costs

Every closing cost in Florida falls into one of three categories: lender fees (charged by us to originate your loan), third-party fees (title, appraisal, survey, recording), and prepaids (taxes, insurance, and interest you fund up front to set up your escrow account).

The first two are mostly negotiable. Prepaids are not — they're real expenses being collected on day one instead of bill three months later.

2–5%
Typical FL closing costs
$0.35
Doc stamp per $100 loan
$0.20
Intangible per $100
$10K+
On a $400K purchase

Lender Fees (Negotiable)

  • Origination fee: Typically 0.5–1% of loan amount. Divito Lending charges no broker fee on most loan programs.
  • Processing & underwriting fees: $400–$1,200 combined depending on lender.
  • Discount points: Optional — you pay 1% of the loan up front to lower the rate by roughly 0.25%. Only worth it if you'll hold the loan more than 5–7 years.
  • Credit report & flood cert: $30–$80, near impossible to avoid.

Florida-Specific Title & Government Fees

Florida has two big state-level closing costs that surprise out-of-state buyers:

  • Documentary stamp tax on the deed: $0.70 per $100 of sale price (paid by seller in most counties; buyer in Miami-Dade for single-family).
  • Documentary stamp tax on the mortgage: $0.35 per $100 of loan amount (paid by buyer, every county).
  • Intangible tax: $0.20 per $100 of loan amount (buyer, every county).
  • Title insurance: Florida uses a promulgated rate set by the state. On a $400,000 sale: ~$2,075 owner's policy. Buyer or seller can pay depending on county custom.
  • Settlement / closing fee: $500–$1,000 to the title company.
  • Recording fees: $50–$200 to the county clerk.
🌴
Florida Quirk

Title insurance rates are set by the state — they're identical across providers. But the settlement/closing fee isn't, and it can swing $500–$1,500. Always shop the title company.

Prepaids and Escrow Setup

At closing, you'll fund several months of property taxes and homeowner's insurance into an escrow account. On a typical Florida home:

  • Homeowner's insurance: One full year prepaid up front ($1,500–$5,000+ in coastal counties).
  • Property taxes: 2–6 months collected to seed escrow.
  • Prepaid interest: From closing day to month-end at your loan's daily rate.

These aren't fees — you'd pay them anyway. But they hit on day one.

Prepaids aren't extra fees — they're bills you'd pay anyway. They just hit your wallet on day one instead of a month later.

Ways to Reduce What You Pay

  • Lender credit: Take a slightly higher rate (e.g. +0.25%) and the lender covers $2,000–$5,000 of closing costs.
  • Seller concessions: Negotiate the seller to pay 3–6% of closing costs depending on loan program.
  • Shop title: You have the legal right to choose your own title company in Florida. Quotes can vary by $500–$1,500.
  • Florida Hometown Heroes: If you qualify (teacher, nurse, first responder, etc.), up to $35,000 in down payment + closing cost assistance.

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Sample Closing Cost Estimate

On a $400,000 Florida home with 20% down ($320,000 loan):

  • Lender fees: ~$1,500
  • Title & settlement: ~$3,200
  • Doc stamps & intangible (buyer): ~$1,760
  • Recording: ~$150
  • Prepaid insurance + tax escrow: ~$3,500
  • Prepaid interest: ~$700
  • Total: ~$10,800 (≈2.7% of purchase price)

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