What is the maximum term allowed for QM eligibility?

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Multiple Choice

What is the maximum term allowed for QM eligibility?

The key idea is the limit on how long a loan can be to still be considered a Qualified Mortgage. A mortgage qualifies only if its repayment term is 30 years or shorter, which helps ensure the loan remains affordable and fully amortizing, reducing the lender’s risk under the ability-to-repay rule. Shorter terms like 15, 20, or 25 years can still qualify as QM as long as they meet all other criteria, but exceeding 30 years would remove the loan from QM status. So the maximum term allowed for QM eligibility is thirty years.

The key idea is the limit on how long a loan can be to still be considered a Qualified Mortgage. A mortgage qualifies only if its repayment term is 30 years or shorter, which helps ensure the loan remains affordable and fully amortizing, reducing the lender’s risk under the ability-to-repay rule. Shorter terms like 15, 20, or 25 years can still qualify as QM as long as they meet all other criteria, but exceeding 30 years would remove the loan from QM status. So the maximum term allowed for QM eligibility is thirty years.

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