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Which of the following is not a component of a mortgage payment?

a principal

Binterest

C.

taxes

Ddown payment

Please select the best answer from the choices provided

O A

OB

O

Verified Answer :

Final answer:

The components of a mortgage payment include principal, interest, and taxes, while the down payment is an upfront cost not included in the monthly mortgage payment. The correct answer is d. down payment. Understanding these components is key when assessing mortgage finances.


Explanation:

Understanding Mortgage Payments

A mortgage payment typically consists of several components that contribute to the total amount a borrower pays monthly. The main components are:

  • Principal: This is the amount of money borrowed to purchase the home.
  • Interest: This is the cost of borrowing the money, expressed as a percentage of the principal.
  • Taxes: Often, property taxes are included in the mortgage payment, which means a portion goes toward local property taxes.

However, one option listed is not considered part of the mortgage payment itself:

  1. Down Payment: This is an upfront payment made when purchasing the home and is separate from the ongoing mortgage payments. It is the initial amount that a buyer pays upfront, which reduces the total amount borrowed.

Therefore, the correct answer to the question is d. down payment, as it is not part of the recurring mortgage payment.


Learn more about mortgage components here:

https://brainly.com/question/30093802


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