What is the Qualifying Rate?

Debt to income is one of the factors used for qualifying a borrower for a particular interest rate.  Of course, the interest rate determines the principal and interest payment commitment which adds to to monthly financial obligation.  For each loan product a rate based upon the proposed or locked rate is used.  For a fixed-rate loan, this is the given rate.  For adjusted-rate loans, this may be the fully indexed rate or a certain percentage above the initial rate.  Your mortgage loan originator should be able to tell which.