Loan basics

Loan amount

Also known as: principal balance, mortgage amount

How much you borrow: typically home price minus down payment.

Loan amount is the principal you finance with the mortgage. In a simple purchase scenario it is home price minus down payment, though some loans can include certain financed fees. On a refinance it is often the balance paid off plus any cash-out and costs rolled into the new loan. Your interest charges and amortization schedule are based on this balance over the loan term.

See also

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Definitions are for general education. Loan products, insurance, and taxes vary by lender, location, and your situation. FinanceFlow calculators produce estimates only and are not a lender quote or professional advice.