[Mary Frances]

We are trying to determine how to calculate a payment on a Interest Only Non-Standard Mortgage for the purpose of refinancing into a Standard Mortgage.
In 1026.43(d)(5)(i) it says to calculate the monthly payment for a non-standard mortgage based on substantially equal, monthly, fully amortizing payments of P&I
using…. We understand the fully indexed rate but are unsure of what term to use to calculate the P&I Payment.
Typically we would do a 1 year term for an Interest Only payment so what Amortization would we use to calculate the P&I Payment? Would a 1 year Interest Only loan be considered “short term” therefore not apply?

[rcooper]

This might help…take a look at p. 45: https://files.consumerfinance.gov/f/201310_cfpb_atr-qm-small-entity_compliance-guide.pdf.

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