Finance category
Mortgage, loan, investing, tax, and money calculators.
Non-QM Loan Premium Calculator
Non-QM loans serve borrowers outside QM standards at premium rates.
Lifetime premium
$295,586
Monthly premium
$821
Rate premium (bps)
200
How the math works
Payment each rate via standard amortization. Lifetime = payment delta × term.
$600k at 6.5% = $3,792/mo. 8.5% = $4,614/mo. $822/mo × 360 = $296k lifetime premium.
How to Use
- Enter loan amount.
- Enter QM rate %.
- Enter Non-QM rate %.
- Enter loan term years.
- Read rate premium + lifetime cost.
Frequently Asked Questions
What is Non-QM?
Loans outside Qualified Mortgage (QM) standards set by CFPB. Reasons: bank statement income (vs W-2), investor DSCR only, foreign national, ITIN, fix-and-flip, asset depletion, self-employed, portfolio, jumbo above limits. Non-QM: 200-400 bps above QM typically. Higher risk, higher yield for lender.
Major non-QM categories?
(1) Bank statement loans: 12-24 months bank statements in lieu of W-2. Self-employed. (2) DSCR: investor loans on property cash flow not personal income. (3) Foreign national: US-based real estate purchase by non-resident. (4) Fix-and-flip: short-term renovation loans. (5) Asset depletion: high-asset borrowers without cash flow. (6) Non-warrantable condos: condo not meeting GSE requirements.
Pricing drivers?
Borrower credit: 620-720 FICO typical. LTV: 70-85% max. Reserves: 6-12 months. Documentation quality. Property type. Loan amount (jumbo premium). Each factor adds 25-100 bps. Non-QM rates 2023-2024: 7.5-12% depending on profile (vs 6-7.5% QM).
When worth it?
Self-employed borrower with strong assets but non-traditional income. Real estate investor with cash flow property. Foreign national paying cash-like down payment. Non-resident investor with strong assets. Each case: compare non-QM cost vs alternatives (longer time to qualify, lower loan amount, different financing). Experienced mortgage broker essential.
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