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The Qualified Mortgage Scorecard determines if a mortgage is a Qualified Mortgage according to a set of government guidelines. The QM guidelines focus on the borrower's ability to pay back the mortgage and key features of the loan. We provide a detailed discussion of the Qualified Mortgage guidelines. In the Qualified Mortgage Scorecard example document below we show a loan that complies with the QM guidelines.
The example also shows that the mortgage has no negative amortization, interest only period or balloon payment, a loan term of no more than 30 years and lender fees below a specified limit, all of which satisfy QM guidelines. In short, your mortgage balance cannot increase, your loan payment must include principal, your loan length cannot exceed 30 years and your closing costs must be below a certain threshold, among other requirements, to qualify as a QM loan. Please note that this is an example Qualified Mortgage Scorecard that should be used for informational purposes only.