![]() Your lender must also consider either how much of your income can go towards your monthly debt, including your mortgage and all other monthly debt payments (known as your debt-to-income ratio) or how much of your income you will have left over after paying your monthly debt (known as your residual income). For your loan to be a Qualified Mortgage, your lender must consider and verify your current monthly income or assets (other than the value of the property that will secure your loan) and your monthly debt. Consider and verify income or assets and debts. United Wholesale Mortgage partners with independent mortgage brokers to help them provide unparalleled client experience, best-in-class turn times.If the points and fees exceed the threshold, then the loan can’t be considered a Qualified Mortgage. These limits will depend on the size of your loan. Not all charges, like the cost of a FHA insurance premiums, for example, are included in this limit. If you get a Qualified Mortgage, there are limits on the amount of certain up-front points and fees your lender can charge. This threshold can depend on the type or size of your loan. The annual percentage rate, or APR, on a Qualified Mortgage cannot be higher than a particular threshold. Loan terms that are longer than 30 years. ![]() Note that balloon payments are allowed under certain conditions for loans made by small lenders. The loan term is the length of time over which your loan should be paid back. " Balloon payments,” which are larger-than-usual payments at the end of a loan term." Negative amortization,” which can allow your loan principal to increase over time, even though you’re making payments.An “interest-only” period, when you pay only the interest without paying down the principal, which is the amount of money you borrowed.Certain risky loan features are not permitted, such as:.Generally, the requirements for a qualified mortgage include: If your loan is a Qualified Mortgage it means the lender met certain requirements and it’s assumed that the lender followed the ability-to-repay rule. This is known as the “ ability-to-repay” rule. A lender must make a good-faith effort to determine that you have the ability to repay your mortgage before you take it out.
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