You budgeted your down payment, then saw a long list of “closing costs” and hit pause. You are not alone. In Florida, and especially in Palm Beach County, buyer closing costs include several state taxes and line items that can surprise you if you are not prepared. In this guide, you will learn what buyer closing costs include, how Florida’s taxes are calculated, and what a realistic cash-to-close looks like for West Palm Beach price points. You will also get practical tips to plan and reduce what you bring to the table. Let’s dive in.
What closing costs include
Closing costs are the out-of-pocket fees you pay at settlement that are separate from your down payment. In Florida, these typically include:
- Lender fees such as origination, appraisal, credit report, and optional points.
- Title and settlement charges, including a title search and closing fee. The owner’s title policy is often paid by the seller in many Florida markets, but it is negotiable.
- Government taxes and recording fees, which in Florida include documentary stamp taxes and an intangible tax tied to your mortgage.
- Prepaids and escrow deposits for homeowners insurance, property taxes, and prepaid interest.
- Inspections, plus any HOA or condo transfer and estoppel fees.
As a rule of thumb, you should plan for about 2 percent to 5 percent of the purchase price in closing costs. Because Florida charges documentary stamp and mortgage-related taxes, buyers here often land toward the higher end of that range.
Who pays what in Palm Beach County
Allocation is negotiable and set in the purchase contract. In many Florida transactions the seller pays for the owner’s title insurance policy, which protects your equity. You, the buyer, typically pay lender-related fees, the lender’s title policy, and the state mortgage taxes and recording fees. Local custom can vary by property type and market conditions, so confirm this with your agent and title company before you sign.
Lender costs
Lender-originated costs are tied to your loan and rate choice.
- Origination or processing fee: often 0.5 percent to 1.5 percent of the loan amount. One point equals 1 percent of the loan.
- Appraisal: typically 400 to 900 dollars depending on property and size.
- Credit report, underwriting, and admin fees: usually 25 to 600 dollars combined.
- Lender’s title insurance: a one-time premium that protects the lender, commonly 300 to 1,500 dollars depending on loan size.
Request a Loan Estimate within three business days of application to see these fees itemized. The Consumer Financial Protection Bureau explains the form and how to compare it across lenders on its Loan Estimate page. You can review the details on the CFPB’s guidance for the Loan Estimate.
Title and settlement fees
Title companies or closing attorneys handle the title search, exam, and settlement.
- Title search, exam, and settlement fee: combined 300 to 1,500 dollars depending on complexity.
- Owner’s title insurance policy: often 800 to 3,000 dollars or more based on price, using Florida’s regulated rate schedule. In many local deals the seller pays this premium, but it must be written into the contract.
Ask early who chooses the title company and who pays which line items, since that choice can affect your total.
Florida taxes and recording fees
Florida charges state taxes on deeds and on mortgages, plus county recording fees. The key items are:
- Documentary stamp tax on the deed: typically 0.70 dollars per 100 dollars of the purchase price. Multiply the sale price by 0.007 to estimate. See rate information at the Florida Department of Revenue’s documentary stamp tax page.
- Documentary stamp tax on the mortgage note: typically 0.35 dollars per 100 dollars of the loan amount, which equals the loan amount times 0.0035.
- Intangible tax on mortgages: typically 0.002 dollars per 1 dollar of the loan amount, which equals the loan amount times 0.002. Learn more at the Florida Department of Revenue’s intangible tax page.
- Recording fees: the Palm Beach County Clerk & Comptroller charges per document and per page. Most buyers see 20 to 200 dollars depending on how many pages are recorded. You can check the schedule on the Palm Beach County Clerk & Comptroller recording fees page.
These taxes scale with the price and loan amount. Higher-priced homes, larger loans, or both will increase your cash to close.
Prepaids and escrow deposits
Prepaids are not fees, but they are still part of cash to close because they are collected at settlement.
- Property taxes: Florida taxes are paid in arrears. You reimburse the seller for your share from the day after closing to year end and may pre-fund an escrow account. If you plan to make Florida your primary residence, review homestead rules with the Palm Beach County Property Appraiser, since the Homestead Exemption can reduce future bills and activate the Save Our Homes assessment cap.
- Homeowners insurance: lenders usually collect the first year’s premium at closing. In South Florida, premiums can vary widely based on roof age, wind mitigation, and flood exposure.
- Prepaid interest: interest from closing day through the end of the month.
- Initial escrow cushion: typically 1 to 2 months of escrowed items.
Inspections, HOA, and condo fees
Most buyers order a general home inspection and may add roof, pest, or HVAC checks.
- General inspection: commonly 300 to 800 dollars.
- HOA or condo estoppel and transfer fees: often 100 to 400 dollars, but amounts vary by association. Estoppel letters confirm dues and assessments and are usually required by lenders.
- Flood considerations: lenders require a flood certification, and flood insurance may be required for properties in Special Flood Hazard Areas. Check a property’s risk on the FEMA Flood Map Service Center.
What you see on your LE and CD
Your Loan Estimate groups costs under Loan Costs and Other Costs, then shows a Cash to Close summary. At least three business days before closing, you will receive a Closing Disclosure. Use it to verify final amounts, compare it to your Loan Estimate, and ask questions about any changes. The CFPB provides a clear guide to the Closing Disclosure.
Real West Palm Beach examples
Below are three illustrative scenarios for West Palm Beach using Florida’s common tax calculations. These examples exclude the down payment. Actual numbers vary by lender, title company, HOA, insurance, and whether the seller pays certain items like the owner’s title policy.
Example A: 350,000 dollar home, 20 percent down
- Loan amount: 280,000 dollars
- Deed doc stamp: 350,000 × 0.007 = 2,450 dollars
- Mortgage doc stamp: 280,000 × 0.0035 = 980 dollars
- Intangible tax: 280,000 × 0.002 = 560 dollars
- Lender, title, appraisal, and recording combined: about 6,500 dollars
- Prepaids and escrows: about 2,000 dollars
- Estimated cash to close for costs only: roughly 11,000 to 13,000 dollars, which is about 3.1 percent to 3.7 percent of the price
Example B: 600,000 dollar home, 20 percent down
- Loan amount: 480,000 dollars
- Deed doc stamp: 600,000 × 0.007 = 4,200 dollars
- Mortgage doc stamp: 480,000 × 0.0035 = 1,680 dollars
- Intangible tax: 480,000 × 0.002 = 960 dollars
- Lender, title, and appraisal combined: about 9,000 dollars
- Prepaids and escrows: about 3,000 dollars
- Estimated cash to close for costs only: roughly 18,000 to 25,000 dollars, which is about 3 percent to 4.2 percent of the price
Example C: 1,200,000 dollar home, 20 percent down
- Loan amount: 960,000 dollars
- Deed doc stamp: 1,200,000 × 0.007 = 8,400 dollars
- Mortgage doc stamp: 960,000 × 0.0035 = 3,360 dollars
- Intangible tax: 960,000 × 0.002 = 1,920 dollars
- Lender, title, and appraisal combined: about 15,000 to 20,000 dollars
- Prepaids and escrows: about 6,000 to 12,000 dollars
- Estimated cash to close for costs only: roughly 35,000 to 55,000 dollars, which is about 3 percent to 4.6 percent of the price
Smart ways to reduce cash to close
You have options to trim your out-of-pocket costs without derailing your purchase.
- Negotiate seller credits. Seller contributions can cover closing costs and prepaids. Limits depend on your loan program, so confirm the caps with your lender.
- Ask the seller to pay the owner’s title policy. This is common in many Florida transactions and can save you a meaningful amount at closing.
- Consider lender credits. You may accept a slightly higher rate in exchange for a credit toward closing costs, then refinance later if it makes sense.
- Time your closing date. Closing later in the month reduces prepaid interest. Coordinate with your lender and title company to optimize the calendar.
- Shop providers. Compare at least two lenders using the Loan Estimate, ask for a fee worksheet from the title company, and shop homeowners insurance.
- Use eligible gift funds. Many loan programs allow gifts for down payment and closing costs. Ask your lender about the documentation needed.
Checklist from contract to closing
- Confirm who pays the owner’s title policy and settlement fees in the contract.
- Request your Loan Estimate within three business days of application and compare offers.
- Order inspections early and negotiate any repair credits before your financing deadline.
- Ask for HOA and condo estoppel letters and documents early, since they can affect timing.
- Verify tax and HOA prorations and how many months of escrow your lender will collect.
- Confirm flood insurance requirements and premium timing if the property is in a mapped zone.
- Review your Closing Disclosure at least three business days before closing and compare it to the Loan Estimate.
Red flags to watch
- Large or unfamiliar third-party fees. Ask for a line-by-line explanation on your Closing Disclosure.
- Big changes from the Loan Estimate to the Closing Disclosure. Federal rules limit certain increases. Ask your lender for an explanation and documentation.
- Vague answers about who pays title costs. Nail down title premiums and settlement fees in writing early.
Plan your cash to close with confidence
Florida’s documentary stamp and mortgage taxes make closing costs a bigger factor for buyers in West Palm Beach, but they are predictable when you know the formulas. Use the state tax rates, compare Loan Estimates, and coordinate timing with your lender and title company. With a clear plan, you can fine-tune your offer strategy, negotiate targeted credits, and avoid surprises on closing day.
If you want local guidance tailored to your price point and neighborhood, connect with Gulfstream Properties. You will get clear numbers, smart negotiation ideas, and a smooth path from offer to keys.
FAQs
What are typical buyer closing costs in West Palm Beach?
- Most buyers plan for about 2 percent to 5 percent of the purchase price, with Florida’s documentary stamp and mortgage-related taxes often pushing totals toward the higher end of that range.
Who usually pays for owner’s title insurance in Palm Beach County?
- In many Florida transactions the seller pays the owner’s title policy, but it is negotiable and must be written into the contract, so confirm this on your offer.
How are Florida documentary stamp and intangible taxes calculated?
- The deed tax is typically price × 0.007, the mortgage doc stamp is loan amount × 0.0035, and the intangible tax is loan amount × 0.002, using rates published by the Florida Department of Revenue.
When will I see my exact closing costs before closing?
- You will receive a Closing Disclosure at least three business days before settlement, and you can compare it to your earlier Loan Estimate to confirm numbers and ask questions.
Do I need flood insurance in West Palm Beach and how does it affect closing?
- If the home is in a Special Flood Hazard Area your lender will require flood insurance, and the first-year premium is often collected at closing, which increases cash to close.
Can I lower my cash to close without hurting my offer?
- Yes, you can negotiate targeted seller credits, request the seller to pay the owner’s title policy, accept a lender credit for a slightly higher rate, and time your closing later in the month to reduce prepaid interest.
