The APR is the fees (e.g., origination fees, points, etc.) expressed as a rate so that you can compare lenders and make a good decision. However, how come the APR is for the "life of the mortgage", if the fees are only paid ONLY in the first year of the mortgage. I.e., there are no origination fees, points, etc. In subsequent years of the mortgage. Is there something missing here? How come the APR is for the life of the loan, or is the APR only used to compare the fees for the first year of the mortgage?
Added (1). Thank you for those who answered. The best answer gave the missing piece of information. APR is only used to compare the cost of OBTAINING the loan, not for the life of the loan. That clarified many things! Thanks!
Read more: Does a mortgage APR exist for the life of the mortgage?
