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  • First Time Home Buyer Mortgage Rates You Can Brag About

  • Your qualifying mortgage loan interest in most cases is equal to the note rate, especially on standard fixed rate mortgage loans.

    The qualifying interest rate usually comes into play on adjustable rate loans, and buy down programs.

    Your adjustable rate loan has a start rate, which is what the loan interest rate is today, and then a maximum cap interest rate, which is the worst it can ever be. When underwriting loans, the program may require lenders to use something other than the current start rate to calculate affordability.  This is usually the worst case interest rate, but can be something different.

    This rate used to determine affordability is therefore known as the qualifying rate.