MORTGAGE TERMINOLOGY

Qualifying Guidelines

There are two main elements lenders consider when determining whether you and any co-borrowers qualify for a specific mortgage. The first is your monthly mortgage costs, including mortgage payments, property taxes and insurance. If you're considering buying a condominium or cooperative, any associated fees are also considered. Your mortgage costs should not exceed 28 percent of your gross monthly (pre-tax) income. The second qualifying guideline relates to your total monthly housing costs and other debts you and any co-borrowers have. These costs should not exceed 36 percent of your gross monthly income. Lenders follow these guidelines because they believe these percentages allow homeowners to pay off their mortgages fairly comfortably without the worry of loan defaults and foreclosures.

Qualifying Ratios

Calculations that are used in determining whether a borrower can qualify for a mortgage. They consist of two separate calculations: a housing expense as a percent of income ratio and total debt obligations as a percent of income ratio.

Quiet Enjoyment

The right of an owner to the use of property without disturbance.

Quiet Title Action

Legal action taken to eliminate any interest or claim to property by others; the procedure used to perfect title when a quitclaim deed is unobtainable.

Quitclaim Deed

A deed that transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made.