Which of the following is NOT a component of closing costs?

Closing costs refer to the expenses incurred during the finalization of a real estate transaction, typically paid at the closing of the sale. These costs include various fees associated with securing a mortgage and transferring property ownership.

A monthly mortgage payment, while a significant aspect of homeownership expenses, is not a component of closing costs. Once the transaction is completed, the mortgage payments become the ongoing financial obligation the homeowner must meet, rather than one-time costs that arise during the closing of the sale.

In contrast, home inspection and home warranty are both typically considered closing costs, as they are expenses that buyers often incur before finalizing the purchase. Similarly, prorated charges for property taxes are included in closing costs, as they account for the property taxes applicable during the period of ownership transfer. These costs are necessary for the buyer to account for any pending fees associated with the property prior to officially taking ownership.