Current Mortgage Rates: Richmond, VA
3.000% (3.001% APR) 30yrs
2.500% (2.617% APR) 15yrs
as of 06/18/21
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Glossary of Mortgage Terms

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Term Main definition
Qualification
The process of determining whether a prospective borrower has the ability, meaning sufficient assets and income, to repay a loan. Qualification is sometimes referred to as "pre-qualification" because it is subject to verification of the information provided by the applicant. Qualification is short of approval because it does not take account of the credit history of the borrower. Qualified borrowers may ultimately be turned down because, while they have demonstrated the capacity to repay, a poor credit history suggests that they may be unwilling to pay.
Qualification rate
The interest rate used in calculating the initial mortgage payment in qualifying a borrower. The rate used in this calculation may or may not be the initial rate on the mortgage.On ARMs, for example, the borrower may be qualified at the fully indexed rate rather than the initial rate.
Qualification ratios
Requirements stipulated by the lender that the ratio of housing expense to borrower income, and housing expense plus other debt send service to borrower income, cannot exceed specified maximums, e.g., 28% and 35%. These may reflect the maximums specified by Fannie Mae and Freddie Mac; they may also vary with the loan-value ratio and other factors.
Qualification requirements
Standards imposed by lenders as conditions for granting loans, including maximum ratios of housing expense and total expense to income, maximum loan amounts, maximum loan-to-value ratios, and so on. Less comprehensive than underwriting requirements, which take account of the borrower's credit record.

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