Which of the following is NOT included in FHA monthly loan payments?

In the context of FHA loans, monthly loan payments typically encompass a variety of components, including the loan principal, taxes, and insurance.

FHA loans include the loan principal as a part of the monthly payment, as borrowers are repaying the amount they borrowed over the life of the loan. Additionally, property taxes and insurance need to be accounted for, often through an escrow account. This means that, as part of the monthly mortgage payment, borrowers can pre-pay property taxes and property insurance, with the lender managing these funds and ensuring they are paid when due.

However, pre-paid loan interest is not included in the monthly loan payments. Interest on the loan is calculated based on the unpaid principal balance and is due as part of each monthly payment, rather than being a separate pre-payment. Therefore, it essentially represents a charge for borrowing money rather than being considered a standard component of what constitutes a monthly payment made by the borrower to the lender. This differentiation is crucial in understanding how FHA monthly payments function.