Loan Type A Paper ARM A Paper fixed sub-prime general sub-prime severe sub-prime extreme | Multiply Income by (DTI*) 0.45 0.50 0.55 0.60 | Result _______ _______ _______ _______ _______ | Notes A,B B |

*DTI: Debt to Income Ratio Notes: A: use fully indexed rate for qualification purposes. This means the underlying index plus the margin after it adjusts, assuming current values.

B: If interest only, use fully amortized rate for qualification purposes. Any four function calculator will do this much. This is the

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