Mortgage and Promissory note

[Jamison Schweitzer]

Hello BP community!

I have just purchased a house with conventional financing and I'm reviewing my loan documents.  I noticed that the amount on my promissory note is different than my mortgage. I was wondering if someone could explain why there is a difference.  Let me give you some details regarding the transaction:

Purchase price: $45,000

Financed repairs: $20,000

Promissory note: $65,000

I pledged $13,000 of equity from another property I own as collateral

$0 cash down

Mortgage: $81,000

When I asked the loan officer about the difference he responded by email saying "That is the mortgage amount due to discounting 20%. Your loan is 65,000."

I've done deals just like this with the same bank although I worked with a different loan officer. In each of those deals the mortgage matched the promissory note. This is a smaller regional bank and a commercial loan.

Can anyone help me understand this?  I appreciate any help you may provide!