Purchase price

The contract states what the buyer will pay for the property. The mortgage may finance only part of that price. An appraisal may support a different value. Down payment math starts from the purchase price. LTV math may use the lesser of price and appraised value, depending on the loan. Those uses do not merge the three ideas.

Consumer glossaries treat purchase price as the agreed price of the home. It remains distinct from a property appraisal.

Disclosures, down payment, and LTV all need a stable name for the contract price.

• Down payment

• Property appraisal