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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 as the borrower spends 38.5% of his or her monthly gross income on total monthly housing expense plus other monthly debt, which is less than the 43.0% maximum debt-to-income ratio permitted according to the QM rules.
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. Please note that this is an example Qualified Mortgage Scorecard that should be used for informational purposes only.
Loan terms assume conforming mortgage amount, 80% LTV ratio and minimum borrower credit score of 740. Purchases and rate and term refinances only. $150,000 minimum mortgage amount. Borrower is responsible for $995 lender fee. Loan terms are subject to change without notice.
Data provided by Brown Bag Marketing, Inc. Payments do not include amounts for taxes and insurance premiums. Read through our lender table disclaimer for more on rates and product details.