Are you budgeting for a home in Boca Raton and wondering how much cash you’ll really need at the finish line? Closing costs can catch buyers off guard, especially with Florida’s state taxes and Palm Beach County fees. You want a clear number, no surprises, and a plan to reduce your out-of-pocket. In this guide, you’ll learn what closing costs include, who typically pays what in Boca Raton, how Florida taxes are calculated, and smart ways to use credits or buydowns to lower your cash to close. Let’s dive in.
Closing costs explained
Closing costs are the fees and prepaid items due when your purchase is finalized. They can include lender charges, title and settlement fees, recording and state taxes, and prepaid homeowners insurance and property taxes. If you have a mortgage, you may also fund an escrow account for taxes and insurance at closing.
You will receive a Loan Estimate within three business days of applying for a mortgage. Before closing, you will receive a Closing Disclosure at least three business days before you sign. Compare them closely. Look for updates like seller credits, association fees, and escrow deposits that change your cash needed to close.
Who pays what in Boca
Local customs guide who typically pays certain items. These are common patterns in Palm Beach County, but everything is negotiable.
Buyer-paid items
- Lender fees, such as underwriting and processing
- Appraisal and credit report
- Lender’s title insurance policy, title search, and many closing agent fees
- Recording fees for the mortgage and deed
- Florida intangible tax and documentary stamp on the mortgage when you finance
- Prepaid items: homeowners insurance, prorated property taxes, and prepaid interest
- HOA or condo transfer and registration fees, plus any condo approval fees
- Inspections and surveys
- Flood determination and, if required, the first year of flood insurance
Seller-paid items
- Real estate commission, commonly about 5% to 6% of the sale price
- Owner’s title insurance policy in many Florida transactions
- Florida documentary stamp tax on the deed
- Prorated property taxes, HOA dues, and any liens that must be cleared
- Agreed seller credits toward the buyer’s costs or rate buydown
Negotiated items
- Who pays owner’s title insurance can vary by community
- HOA estoppel and resale package fees can be paid by either side
- Seller credits toward buyer costs, points, or temporary buydowns are negotiated
Typical cost ranges
A common rule of thumb in Boca Raton is that buyer closing costs, not including your down payment, run about 2% to 5% of the purchase price. Examples:
- $400,000 home: about $8,000 to $20,000
- $600,000 home: about $12,000 to $30,000
- $1,000,000 home: about $20,000 to $50,000
Seller-side costs often total 6% to 10% of the sale price once you include commission, the deed tax, owner’s title policy, and prorations.
Sample $600K purchase
Here is an illustration for a $600,000 Boca Raton purchase with 20% down and a $480,000 loan. Actual figures vary by lender, title company, and association.
- Loan origination and lender fees: about $2,500 to $6,000
- Appraisal: about $400
- Lender’s title policy, title search, and closing fees: about $1,500 to $3,000
- Florida intangible tax on mortgage at 0.35%: $480,000 × 0.0035 = $1,680
- Recording fees: fixed per document, often a few hundred dollars
- Prepaid insurance and initial escrow deposits: about $1,200 to $2,500
- Prorated property taxes and prepaid interest: about $500 to $2,000
- HOA or condo transfer package: about $100 to $500
Buyer total estimate: roughly 2% to 4% of price, or about $12,000 to $24,000 in this example.
On the seller side for a $600,000 sale:
- Commission at 6%: $36,000
- Documentary stamp tax on deed at 0.7%: $600,000 × 0.007 = $4,200
- Owner’s title insurance: often a few thousand dollars based on price and state premium tables
- Prorations and association payoffs: case by case
Seller estimate: commonly 6% to 9% of the sale price.
Florida taxes and fees
Understanding two state-level items will help you budget accurately.
Deed documentary stamp tax
Florida charges a documentary stamp tax on the deed, commonly $0.70 per $100 of the purchase price. Many Florida sellers pay this in practice, though parties can negotiate.
Mortgage intangible tax
If you finance, Florida also charges $0.35 per $100 of the loan amount on the mortgage. This is typically a buyer cost and is in addition to standard county recording fees.
Recording fees
Palm Beach County recording fees are fixed amounts per document and per page. Your title company will quote the exact total based on your transaction.
Condos and HOAs
Boca Raton has a large condo and HOA market. That can add a few unique line items and timing steps.
Estoppel and transfer fees
Associations charge an estoppel or resale package to confirm dues status and rules. There can also be a transfer or registration fee for new owners. In some communities the seller covers the estoppel, but it can be negotiated.
Approvals and reserves
Some associations require buyer approval and minimum processing times. Plan for that in your closing timeline. Reserve requirements, master policy deductibles, or special assessments can also affect cash needed and insurance choices.
Flood and insurance
Coastal and low-lying areas may be in FEMA flood zones. If your home is in a Special Flood Hazard Area and you have a mortgage, your lender will require flood insurance. Ask for an early flood determination and an insurance quote to avoid last-minute surprises.
Lower your cash to close
You have options to reduce upfront costs without derailing your purchase. Talk with your lender and agent early so you can structure the offer and the loan correctly.
Seller credits
Seller concessions can cover allowed buyer costs, prepaids, and points. Conventional loans often cap concessions between 3% and 9%, depending on your down payment and occupancy. FHA generally allows up to 6%. VA typically allows up to 4% in concessions with specific rules. Program limits apply and must be disclosed.
Lender credits and rate trade-offs
You can accept a slightly higher rate in exchange for a lender credit that reduces closing costs. This lowers cash up front, but it raises your monthly payment. Compare the lifetime cost and ask your lender to show how the credit changes your APR.
Rate buydowns
- Temporary 2-1 buydown: An upfront fee funds a lower rate in year 1 and year 2, then your rate returns to the note rate. Sellers can pay for this as a concession within program limits.
- Permanent buydown: Paying points lowers the rate for the life of the loan. One point is about 1% of the loan amount. The rate reduction per point varies, often about 0.125% to 0.25%. Calculate your break-even based on how long you expect to own the home.
Budget and next steps
Use this simple plan to get precise numbers and avoid surprises.
- Request Loan Estimates from at least two lenders and compare fees line by line.
- Ask your title company for an itemized quote and confirm who pays for owner’s title insurance.
- Confirm Florida documentary stamp and intangible tax amounts on your contract price and loan.
- If buying a condo, request the estoppel and resale package early and get fee amounts and timelines.
- Order a flood determination and, if needed, a flood insurance quote.
- Decide if a seller credit, lender credit, or rate buydown best fits your plans and budget.
What to bring to closing
- Government-issued photo ID for all signers
- Final wired funds or a certified cashier’s check per the Closing Disclosure
- Wire instructions verified by phone with your title company to prevent fraud
- Proof of homeowners insurance paid or binder as required by your lender
- Any lender conditions your loan officer flagged for closing
Local context and resources
Palm Beach County’s property tax calendar and millage rates affect prorations. The county Property Appraiser’s office provides assessment and exemption information. The Clerk & Comptroller publishes recording requirements and fees. For exact title insurance premiums, your title company will use Florida’s premium tables. Always confirm final figures with your lender and title company before you sign.
If you want a personalized estimate based on your price point, down payment, and HOA type, reach out. You will get a clear, custom breakdown for your Boca Raton address and timeline.
Ready to price your move and lower your cash to close with smart credits or buydowns? Connect with Judi Haynesworth for a quick consult and a tailored estimate for your Boca Raton purchase.
FAQs
How much should a Boca buyer budget for closing?
- A common range is about 2% to 5% of the purchase price, not including your down payment. A $600,000 purchase might total about $12,000 to $30,000 depending on loan, escrow deposits, and HOA fees.
Who typically pays what in Florida closings?
- Buyers usually pay lender fees, lender’s title policy, recording fees, and mortgage-related taxes. Sellers often pay commission, owner’s title policy, and the deed tax. Many items are negotiable.
What are Florida doc stamps and intangible tax?
- The deed tax is often $0.70 per $100 of price, commonly paid by the seller. The mortgage intangible tax is $0.35 per $100 of the loan amount, typically a buyer cost when financing.
Can the seller pay my closing costs?
- Yes, within loan program limits. Conventional loans often allow 3% to 9% based on down payment, FHA up to 6%, and VA typically up to 4% in concessions with specific rules.
What is a 2-1 buydown and who pays it?
- A 2-1 buydown lowers your interest rate in the first two years through an upfront fee. The buyer or the seller can fund it, but it counts toward seller concession limits if the seller pays.
How do condo fees affect closing costs?
- Expect an estoppel or resale package and possible transfer or approval fees. These vary by association, so get amounts and timelines early in your process.
What should I bring to the closing table?
- Bring a valid ID, verified wire or cashier’s check for final funds, insurance proof, and any lender-requested documents. Always confirm wire instructions directly with your title company.
