Florida Closing Costs Third Highest in U.S.

As if taking out a Florida mortgage weren’t expensive enough.

The Sunshine State ranks third in the U.S. in terms of closing costs - the various fees added on at the end to complete a Florida mortgage - results of a new survey found.

The calculation is based on a buyer getting a $200,000 Florida mortgage loan and paying an average of $3,175 in origination, title and closing costs.

For the third year in a row, New York State was found to have the most expensive loan origination and closing fees in the country, amounting to $3,830.

That figure is about 40 percent higher than all other states and the District of Columbia, according to Bankrate.com.

At the low end, those same costs in Indianapolis, Indiana, add up to $2,339 for the same home loan, $1,491 less.

Texas again had the second-highest origination and closing costs - $3,413, which was 12.2 percent lower than New York State. Rounding out the top five were Florida, Pennsylvania ($3,169) and Ohio ($3,047).

After Indiana, the least expensive states in which to get a mortgage are Wyoming ($2,390), Illinois ($2,401), Nevada ($2,467) and North Carolina ($2,487), according to the survey of closing costs.

The survey noted the higher closing costs in Florida are at least in part due to the inclusion of lawyers in the closing process and price of homeowner’s insurance.

But that’s little consolation to Florida mortgage applicants already struggling with higher mortgage rates, taxes and energy prices.

SOURCE: The Albany Business Review