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So I am thinking of buying a condo and I was wondering something… If I put 20% down on 390k house that is about 80k. which means my loan balance would be 310k after down payment.

So when I pay my monthly mortgage payment (lets say $ 2000K a month) I believe that is based on the 390k sale price….correct?..This being the case wouldn’t it make sense to refinance almost immediately to get a lower monthly payment? ( I would assume there is some sort of language preventing someone from doing this)

2 Thoughts on Is the down payment included in the monthly mortgage payment?
  1. Reply
    reenzz
    February 16, 2014 at 5:38 am

    The mortgage payment is based on the balance of the loan…not the full purchase price of the condo.

  2. Reply
    Anonymous
    February 16, 2014 at 5:43 am

    The mortgage payment is based on the amount financed. So, for a 390K home with 80K down, your mortgage payment would be based on the financed amount of 310K.

    There are two basic ways to state your mortgage payment: Principal & Interest (PI) and Principal, interest, taxes, and insurance (PITI). When you see the adds for 100K loans for $ 600/month, that is PI. In reality, the actual payment will be higher because you also pay taxes and insurance.

    When you talk to a mortgage broker, you want to know your PITI payment.

    Incidentally, most mortgages do not have a prepayment penalty, so, if you can pay a little more on each payment, you’ll save 1000’s in interest.

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