"This is probably one of the hardest decisions I've had to make," the former Detroit Pistons star told Detroit radio station WDFN. "In my heart, I wanted to stay, I really did, but I decided this was the route that I wanted to go."
The Magic offered the free agent $67.5 million for six years, the most allowed under the collective bargaining agreement.
"I was leaning there, and that's why I visited there, and that's why I didn't visit anyplace else," Hill said.
"Ultimately it's just a good fit, and it wasn't about going down there and seeing Mickey Mouse. To me, I've always been impressed with the team and that organization, and it's a place where, if I was to leave Detroit, that's where I wanted to go."
The decision came amid a heightened courtship of Hill, in which the New York Knicks flew their management team to Detroit to meet with him and the Pistons urged him to re-sign.
"I still heard out other teams, and I still heard what they had to say," Hill said. "But at the end of the day, this is the decision I made and the decision I'm comfortable with."
Pistons executive Joe Dumars said he met with Hill on Thursday, two days after the five-time All-Star returned from a house-hunting trip to Florida.
"We had a very good conversation," Dumars said. "I wished him well, and we both expressed some sorriness about the situation."
Hill became a free agent last Saturday, but cannot sign a contract until Aug. 1.
He visited Orlando with San Antonio center-forward Tim Duncan.
"There's no guarantee first of all that Tim Duncan's going there, and I understand that," Hill said. "He's got a tough decision to make."
Hill has spent his entire career with Detroit. He averaged 25.8 points last season, third-best in the NBA.