What term refers to the total amount of money that a borrower will repay over the life of the loan?

The term that refers to the total amount of money that a borrower will repay over the life of the loan is indeed the Total Cost of Mortgage. This figure encompasses not only the principal amount borrowed but also all interest payments made over the life of the loan, as well as any associated fees or costs that may arise. It's a comprehensive measure that gives borrowers a clearer understanding of their financial commitment over the entire loan term.

When evaluating this concept, it's important to differentiate it from other terms. The Loan Balance refers specifically to the remaining amount owed at any given point in time, not including the totality of interest or fees that may have been paid since the loan's inception. Total Interest Cost isolates just the interest portion of the payments rather than considering the entire amount that will be repaid, which is more narrowly focused. Loan Amount simply indicates the initial sum borrowed, excluding any future repayment obligations.

Understanding the Total Cost of Mortgage empowers borrowers to make more informed decisions, as it reflects the full financial impact of obtaining a mortgage, encapsulating both the immediate loan amount and the long-term financial landscape.