Qualification Rate


Definition of "Qualification Rate"

Kim Murray real estate agent
Kim Murray House2Home Reatly

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.

Have a question or comment? We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

 

Popular Real Estate Terms

Locking The Loan

An option exercised by the borrower, at the time of the loan application or later, to 'lock in' the rates and points prevailing in the market at that ...

Processing

Compiling and maintaining the file of information about the transaction, including the credit report, appraisal, verification of employment and asset ...

Rebate

Same as term Negative Points: Points paid by a lender for a loan with a rate above the rate on a zero point loan. For example, a lender might quote t ...

Prepayment

A payment made by the borrower over and above the scheduled mortgage payment. If the additional payment pays off the entire balance it is a prepaymen ...

Balloon

The loan balance remaining at the time the loan contract calls for full repayment. ...

Loan Officer

Employees of lenders or mortgage brokers who find borrowers, sell and counsel them, and take applications. Loan officers employed by mortgage broker ...

Popular Real Estate FAQ

Should I Pay Extra Each Month?

This calculator figures how much interest savings you will have depending on how much extra you pay monthly. Input an extra payment and calculate your ...

What Is A Down Payment?

A down payment is the money you pay up front for the purchase of a home. ...

How Much Money Can I Borrow To Buy A Home?

To begin, you\'ll need to figure out what your gross income is (before taxes) monthly and yearly. To get a quick ballpark figure, take the yearly inc ...

What Is A Counteroffer?

A counteroffer is an offer made by one party that makes changes to the original or latest offer of the other party. ...

What Are Jumbo Mortgages?

Jumbo mortgages are mortgages larger than the limits set by Fannie Mae and Freddie Mac. A jumbo mortgage carries a higher interest rate than a convent ...

What Is An Assessed Value?

The public tax assessor value of a property as determined for the purpose of taxation. ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add real estate terms app
on your Website

Real Estate Advice

Spring Landscaping Ideas to Improve Curb Appeal and Sell Your House DIY Home Improvement to Increase Your Home Value Moving Tips: House Relocation Stress Free Increase Your Home Value With These Home Improvement Ideas Down Payment: Everything You Wanted to Know

FAQ

Do I need Life Insurance? What is commission? What do I need to know about Homeowners Insurance? What is a counteroffer? What is a deed?