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Economy / Business

Florida Homes Have Fourth-Highest Closing Costs

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The average cost to close on a $200,000 mortgage is $3,754, according to Bankrate.com. But in Florida, homebuyers can expect to shell out a few hundred extra dollars.

According to Bankrate's latest survey, Florida is among the top five most expensive states to close on a home. In 2012, the average closing costs on a $200,000 mortgage were as follows:

  1. New York ($5,435)
  2. Texas ($4,619)
  3. Pennsylvania ($4,467)
  4. Florida ($4,395)
  5. Oklahoma ($4,352)

Closing costs include fees for loan applications, document preparation, insurance underwriting and other miscellaneous expenses. Lenders often compete for business by undercutting each other's prices--say, not charging an application fee.
Experts urge homebuyers to shop around.

“What this says is Florida is up at the top of another one of those non-consumer friendly categories,” real estate analyst Jack McCabe told the Palm Beach Post. “But are closing costs something that weighs heavy on a buyer’s mind? I don’t think so.”

Missouri had the cheapest closing cost for a $200,000 mortgage, averaging $3,006.

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