qualified mortgage

A Qualified Mortgage (QM) is a type of home loan that meets certain criteria set by regulations to ensure borrowers can afford their payments. These criteria include limits on how much debt a borrower can have compared to their income, restrictions on risky loan features, and caps on fees and points. The goal of a Qualified Mortgage is to protect consumers from high-risk lending practices and promote responsible borrowing, making it easier for lenders to determine who qualifies for a loan. Overall, it aims to create a safer borrowing environment in the mortgage market.