The purchase price of our house is $598k. The appraisal came in at $572k, so we have to cover a $25k gap. We still have to put down $119k to avoid mortgage insurance. Since we are paying the 25k gap, wouldn’t the loan amount be 598-119-25=454k? Our lender is saying the loan amount is 598-119= 578k. But then we would still pay gap, so the total is $622. How does that make sense?? Where is the 25k we are paying to cover the gap going?