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
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.