[quote=ninaprincess]OK, I accept that PMI is higher. However, the finance amount is different in the two documents. I need to borrow $405,700 but the truth in lending document shows only $400,881 but the payment is still $2,175.41. $2,175.41 should be the payment for $405,700 and not $400,881 at 4.99%.

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The difference is almost certainly the points and other fees that are being financed. Which is also why the differece between the interest rate and the APR.