**Dictionary
- Q**

Mortgage terms and definitions for
home buyers, home sellers, and real estate consumers. Use
the links below to find the word you're looking for.

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Qualifying
Ratio -

The ratio of the borrower's fixed monthly expenses to
his gross monthly income. Ratios are expressed as two
numbers like 28/36 where 28 would be the *Front-End
Ratio* and 36 would be the *Back-End Ratio*.

The
Front-End Ratio is the percentage of a borrower's
gross monthly income (before income taxes) that would
cover the cost of PITI (Mortgage **P**rincipal
Payment + Mortgage **I**nterest Payment
+ Property **T**axes + Homeowners **I**nsurance).
In the case of a 28% Front-End Ratio a borrower could
qualify if the proposed monthly PITI payments were
28% or less than the borrower's gross monthly income.

The
Back-End Ratio is the percentage of a borrower's gross
monthly income that would cover the cost of PITI *plus*
any other monthly debt payments like car or personal
loans and credit card debt.

Note
that qualifying ratios are only a rough guideline
in determining a potential borrower's credit-worthiness.
Many factors such as excellent or poor credit history,
amount of down payment, and size of loan will influence
the decision to approve or disapprove a particular
loan.

Quitclaim
Deed -

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