Qualification Rate
Definition of "Qualification Rate"
The interest rate used in calculating the initial mortgage payment in qualifying a borrower. The rate used in qualifying borrowers may or may not be the initial rate on the mortgage. On FRMs with Temporary Buydowns, the qualifying rate is the 'bought down' rate. On ARMs, the borrower may be qualified at the Fully Indexed Rate rather than the initial rate.
Popular Mortgage Terms
A mortgage lender that sells all the loans it originates in the secondary market. ...
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The ratio of housing expense to borrower income. This ratio is one factor used in qualifying borrowers. ...
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The period over which the borrower is obliged to make payments. On most mortgages, the payment period is a month but on some it is biweekly. It is not necessarily the same as the Interest ...
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Assuming responsibility for someone else's payment obligation in the event that that party defaults. ...
Requirements stipulated by the lender that the ratio of housing expense to borrower income and the ratio of housing expense plus other debt service to borrower income cannot exceed ...
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