Amount Financed

You’ve taken the plunge and purchased your first house. There is a pile of documents about a mile high that you need to sign at the closing, and one of them is the “loan calculations” listed under Closing Disclosure. It will show the full amount you are borrowing, less the upfront fees the lender is charging you.

For example, if you have a $200,000 loan, but the lender is charging you $5,000 in points and other fees, the official “amount financed” would be $195,000. You would pay the $5,000 at closing, and the balance will determine how much your interest rate and monthly payments will be. You can also choose to finance your points and fees over the life of the loan.