Qualification Ratios
Definition of "Qualification Ratios"
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 specified maximums, e.g., 28% and 35%. These may reflect the maximums specified by Fannie Mae and Freddie Mac; they may also vary with the loan-value ratio and other factors.
Popular Mortgage Terms
A facility offered by some lenders to mortgage brokers where de jure the brokers become employees of the lender but de facto they retain their independence as brokers. One of the ...
Protection for a borrower against the danger that rates will rise between the time the borrower applies for a loan and the time the loan closes. Rate protection can take the form of a ...
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A payment made after the grace period stipulated in the note, usually 10-15 days. ...
A term that small lenders sometimes use to distinguish themselves from mortgage brokers. ...
The initial interest rate on an ARM, when it is below the fully indexed rate. ...
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