THE FIELD GUIDE · MORTGAGE PLANNING
Look at the property’s cash flow
Use DSCR and interest-only math with their limits in view.
Use consistent periods
Debt-service coverage ratio divides net operating income by debt service over the same period. Use annual NOI and annual debt service in our tool. Gross rent is not NOI: operating expenses still need to be deducted.
Interest-only is not principal repayment
An interest-only payment is the outstanding balance multiplied by the annual rate divided by twelve. It does not reduce the principal. Payments may rise when amortization begins, and a balloon balance may remain.
Model costs beyond the note
Vacancy, repairs, management, capital work, taxes and insurance all affect cash flow. The calculator does not set a lender’s DSCR threshold or establish that a property qualifies.
Use the actual loan terms
Commercial, investor, DSCR and private loans can have different underwriting, fees, rate structures and protections. National owner-occupied mortgage benchmarks are not a quote for these products.
This guide is educational. Confirm the figures and conditions for your actual loan.
Official consumer or market guidance ↗