Qualifying Ratio -
The ratio of your fixed monthly expenses to your gross monthly income. PMLC 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 your gross monthly income (before income taxes) that would cover the cost of PITI (Mortgage Principal Payment + Mortgage Interest Payment + Property Taxes + Homeowners Insurance). In the case of a 28% Front-End Ratio a borrower could qualify if the proposed monthly PITI payments were 28% or less than your 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.

Please note that qualifying ratios are only a rough guideline in determining your 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. PMLC urges you to discuss your particular situation with one of our qualified loan specialists regardless of the outcome of any self-qualification exercise.

Settlement Costs -
See Closing Costs.

Tax Lien -
A claim against real estate for the amount of its unpaid taxes.

Title -
A document that gives evidence of an individual's ownership of property.

Title Insurance -
Title Insurance policies typically insure a homebuyer against any title-search errors or mistakes, and against loss due to disputes over property ownership. Title Insurance can additionally offer protection to the lender under similar circumstances. The cost of title insurance is usually a set value per thousand of dollars of the total loan amount.

Title Search -
An examination of city, town, or county records to determine the legal ownership of real estate.

Total Debt Ratio -
Monthly debt and housing payments divided by gross monthly income. Also known as Back-End Ratio.

VA Loan -
A government-backed mortgage loan supported by the US Veterans Administration.

Variable Rate Mortgage -
See Adjustable Rate Mortgage.