Debt Service
Debt service refers to required payments due on a loan, commonly including principal and interest; the DSCR framework uses debt service as the denominator in measuring cash-flow coverage. Banking and finance explanations of DSCR specify debt service payments as the obligation set against NOI.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Underwriting; servicing; covenant monitoring
- Property types
- Residential and commercial
In practice
For floating-rate loans, underwriting often models multiple debt service cases (current, capped, stressed) because the denominator is rate-sensitive.
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Related terms
Underwriting and Risk Modeling
General information, not legal, tax or financial advice.