If you need assistance, please call 321-613-5922

Closing Cost Reality

Thursday, June 3, 2021   /   by Flr Team

Closing Cost Reality

Closing costs are tallied up just as you’re finalizing your mortgage and about to take over the property title.  Most of them are paid by the buyer, but the seller may be on the hook for a few too. Although interest rates are at a historic low, closing costs can be significant so you should factor that into your home-buying budget. Here’s some things you should know to avoid any last-minute surprises. 

What exactly are mortgage closing costs?

Closing costs are the upfront fees charged to secure a loan and transfer the ownership of a property. They cover a lot of the behind-the-scenes transactions and paper pushing. The realtors, bank, title company, appraisers and document-drafting lawyers all need to get paid. The buyer typically pays most of these costs. However, this can vary among states and from deal to deal. 

What exactly do closing costs pay for?

Depending on your particular transaction and interest rates, your closing costs would include local insurance fees, tax rates, local appraisal fees and other factors. But here’s a general breakdown of some of the common expenses covered by closing costs. 

Title Insurance: This protects lenders from financial losses stemming from problems related to a property title, such as liens or ownership conflicts. 

Government Taxes: This includes property taxes on the home, local government fees (such as recording the sale of the property) and a tax for transferring the title from the seller to the buyer. 

Appraisal Fees: These are charged by an appraiser for coming to the property and assessing the home’s value to determine an appropriate loan amount. 

Prepaid Expenses: These are items like homeowners insurance, property taxes, and interest until the first payment is due. 

How much are closing costs?

According to the ClosingCorp, the national average closing costs for a single-family home property were $5,749 including taxes and $3,339 excluding taxes in 2019. Based on the amount you borrowed, it can vary from 2%-5%.

Have questions regarding this topic? Give us a call today to chat!

Florida Lifestyle Realty


Florida Lifestyle Realty LLC
Jackie Griffin
6500 N. Atlantic Ave. Suite C
Cape Canaveral, FL 32920

The information displayed on this website comes in part from the Broker Reciprocity Program of Brevard County, Florida. Real estate listings held by brokerage firms other than Florida Lifestyle Realty LLC in Florida are marked with the Broker Reciprocity thumbnail. Copyright 2014 Space Coast Association of REALTORS®, Inc. All rights reserved.
IDX information is provided exclusively for consumers’ personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data is deemed reliable but is not guaranteed accurate by the MLS.com. October 4, 2022
Copyright 10/4/2022 4:23 AM CST New Smyrna Beach Board of REALTORS®, Inc. All rights reserved”. NSBBORMLS data is provided solely for publication on the Internet as a tool for consumers to search and view properties available for sale, which have been listed with NSBBORMLS members. “IDX information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties to consumers that may be interested in purchasing. Data is deemed reliable but not guaranteed accurate by the MLS”
This site powered by CINC: www.cincpro.com