Florida Homes Have Fourth-Highest Closing Costs
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:
- New York ($5,435)
- Texas ($4,619)
- Pennsylvania ($4,467)
- Florida ($4,395)
- 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.