The loan amount in the truth-in-lending document should show $405,700 instead of $400,881.

I just spoke with the broker again. She said it was a mistake by the lender and it will be corrected by the underwriter.

I calculated the payment:
2175.41 * 360 = $783,147.6
209.61 * 91 = $19,074.51
+ fee (~2000?)

I am not sure how to put everything togetther to get APR but I think it is not too far off 5.44 so I am OK.

My main concern was the different loan amount but will see what the underwriter says. It was hard for me to believe they made such a mistake like that.

(91 payments til reaching 78% of loan/price ratio)

[quote=SK in CV][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%.

[/quote]

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.[/quote]