U.S. Mortgage Index

Loan amount

Definition

Loan amount is the amount of money borrowed in the mortgage. On consumer disclosures it is related to, but not always identical to, the amount financed.

In plain English

The loan amount is how much the mortgage itself is for. It is not the purchase price and not cash to close. Fees that are financed can make disclosure lines differ from one another. This page is the borrowed-principal idea, not a fee table.

Technical definition

CFPB’s Amount financed heading describes money borrowed minus most up-front fees the lender charges. That official line is equivalent evidence for the borrowed-amount concept consumers call loan amount.

Why it matters

LTV, monthly payment, and jumbo-versus-conforming discussions all start from this figure.

Example

Alex’s purchase price is one number. The mortgage loan amount is smaller because of the down payment. Closing costs are a third figure.

Sources reviewed