Which of the following is NOT typically included in closing costs?

• A. Title fees
• B. Real estate agent commission
• C. Pest inspection
• D. Monthly mortgage payment

Answer: (D)

Closing costs encompass various fees and charges that buyers and sellers incur during the transaction process of transferring property ownership. These costs typically include expenses directly related to the purchase and sale of real estate.

Title fees are necessary for securing the legal ownership transfer and ensuring there are no liens against the property. Real estate agent commissions are also a significant component of closing costs, as they are fees paid for the agent’s services in facilitating the sale. Pest inspections, which are often required to determine if there are issues with pests in the home, are also included in these costs.

In contrast, the monthly mortgage payment is not a closing cost. Instead, it is an ongoing expense that borrowers will pay for the duration of the loan. Closing costs are one-time fees paid at the closing meeting, while mortgage payments will typically continue for years, making this distinction crucial. Therefore, it is accurate to state that monthly mortgage payments are not included in closing costs.