Besides your down payment, buyers in Miami should plan for closing costs of roughly 2% to 5% of the purchase price. Here is what those costs are, who usually pays what in Miami-Dade and Broward, and how to lower them.
Florida taxes on your mortgage
If you finance, Florida charges two taxes when the mortgage is recorded, and the buyer pays both:
| Tax | Rate | On a $400,000 loan |
|---|---|---|
| Documentary stamp tax on the note | $0.35 per $100 of the loan | $1,400 |
| Intangible tax on the mortgage | 0.2% of the loan | $800 |
Cash buyers do not pay these two taxes.
Title insurance
In Miami-Dade and Broward, the custom is that the buyer pays for the owner's title policy and chooses the title company. If you finance, you also pay for the lender's policy, which is much cheaper when issued at the same time. Florida title premiums are set by the state, so the savings come from fees, endorsements and the company you choose, not the base premium.
Lender and loan costs
- Origination and underwriting fees, and any points you choose to pay to lower your rate.
- Appraisal, often around $500 to $800 for a single-family home.
- Credit report, flood certification and tax service fees.
- Prepaids and escrow: usually a full year of homeowners insurance paid up front, plus a few months of taxes and insurance held in escrow. In South Florida, insurance is often the biggest prepaid item.
Inspections and due diligence
- Home inspection: commonly a few hundred dollars, more for large or older homes.
- 4-point and wind mitigation reports: often needed for insurance on older homes, and a wind mitigation report can lower your premium. See our home insurance guide.
- Survey, and for some homes a pool, termite or sewer inspection.
- Condo or HOA application fees if the association approves buyers.
How to lower your closing costs
- Ask for seller concessions. A seller credit toward closing costs is common, especially on homes that have been on the market a while.
- Compare Loan Estimates. Every lender must give you a standard Loan Estimate. Compare section A (origination) and the rate, not just the monthly payment.
- Look into down payment assistance. Miami-Dade County and Florida Housing have programs for eligible first-time buyers. See our first-time buyer guide.
- Shop insurance early. A good wind mitigation report and a newer roof can cut the premium you prepay at closing.
Figures here are general estimates for planning. Your lender's Loan Estimate and Closing Disclosure, and your title company's settlement statement, are the official numbers.
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