How is the cost of a mortgage typically expressed?

The cost of a mortgage is typically expressed as a yearly rate, which is known as the annual percentage rate (APR). This rate reflects the total cost of borrowing, including the interest rate and any associated fees, divided by the loan amount over a year. This standardization allows borrowers to easily compare different mortgage options and understand the long-term costs associated with each loan.

Other options may consider aspects of the mortgage cost but do not present a typical measure. For example, while a monthly payment summarizes what a borrower pays on a monthly basis, it does not provide a clear view of the overall cost over the loan's life. A flat fee and total interest paid are not as representative or universally used as the APR for conveying the cost of borrowing money through a mortgage.