Which aspect of a mortgage informs the borrower about the total cost over the life of the loan?

The Annual Percentage Rate (APR) is the correct choice because it represents the total cost of borrowing expressed as a yearly interest rate. This metric includes both the interest rate on the loan and any additional costs or fees that are financed into the mortgage, providing borrowers with a clearer understanding of the total financial obligation over the life of the loan. By factoring in these additional costs, the APR allows borrowers to compare different mortgage options more effectively, as it gives a more comprehensive view of what the loan will actually cost them rather than just focusing on the interest portion.

In contrast, while the principal amount is important as it indicates how much money will be borrowed, it does not reflect the total cost over time, including interest and other costs. The Closing Disclosure is essential as it provides a detailed breakdown of the loan terms and costs at the closing of the mortgage but does not simplify the total cost into a single percentage figure like the APR does. Lastly, the Satisfaction of Mortgage is a document that indicates the loan has been paid off, and it does not provide any information regarding the costs or terms of the mortgage while it is still active.