Definition of "Qualification Rate"
Marta Nazario, Real Estate Agent
Engel & Völkers Tysons
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.
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