When do I pay closing costs?

At closing, by wire transfer to the title company, together with the rest of your down payment. Confirm wiring instructions by calling the title company at a number you already trust, never from an email alone, because wire fraud targets home buyers.

Are closing costs tax deductible?

Most are not. Discount points, prepaid mortgage interest and property taxes may be deductible if you itemize. Your tax adviser confirms what applies to you.

How do I find out the exact amount?

Your lender's Loan Estimate gives the first figure and the Closing Disclosure gives the final one at least three business days before closing. A cash buyer receives a settlement statement from the title company.

Closing Costs for Home Buyers in Florida

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

Published October 4, 2026

The Short Answer

A Florida buyer using a mortgage commonly pays 2 to 5 percent of the purchase price in closing costs, on top of the down payment. The main items are lender fees, Florida's taxes on the mortgage, title insurance and settlement fees, and prepaid property taxes and insurance. A cash buyer pays much less, because most of those costs come from the loan.

Lender Charges

The origination or underwriting fee, the appraisal, the credit report, a flood determination and any discount points you choose to buy to lower the rate. Lenders must give you a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before closing, so you can compare lenders line by line and check that nothing changed at the end.

Florida's Taxes on the Mortgage

Florida charges documentary stamp tax on the promissory note of $0.35 per $100 borrowed, and an intangible tax of $2 per $1,000 on the new mortgage. The buyer pays both because they arise from the loan. The documentary stamp tax on the deed, $0.70 per $100 of the price in most counties, is by custom the seller's cost.

Title Insurance and Settlement

Your lender requires a lender's title policy, and an owner's policy protects your own interest in the home. Florida sets the premium rates. Who pays for the owner's policy and chooses the title company follows local custom and is negotiable: the buyer usually pays in Miami-Dade and Broward, and the seller commonly pays in Palm Beach County and on the Treasure Coast. The settlement fee, the title search, the lien search, the survey and recording fees are listed beside it.

Prepaids and Escrows

You pay the first year of homeowners insurance before closing, flood insurance where the lender requires it, interest from the closing date to the end of the month, and usually a few months of property taxes and insurance into the lender's escrow account. These are your own future bills paid early, not fees, but they are part of the cash you bring.

Condo and Association Costs

Buying in a condominium or a homeowners association can add an application fee, a capital contribution to the association set by its documents, and move-in or elevator deposits. Ask for these figures during the inspection period; they vary widely from one community to the next.

Can the Seller Pay Some of It?

A seller can agree to a credit toward your closing costs, within the limit your loan type allows. Whether one is realistic depends on how the home is priced and how many other buyers want it, which is what your agent weighs when writing the offer.

Talk It Through With a Broker

Every purchase is its own set of numbers. Tell us what you are looking for and a BreakThru agent will walk you through the costs, the contract and the homes that fit. Talk to a BreakThru agent · Search homes for sale