Debt Service (Monthly Mortgage)

Monthly mortgage payment on the refinanced loan.

Definition

After the BRRRR refi, this is your monthly principal + interest payment. Higher LTV means more cash back at refi but higher debt service and lower cashflow. Kaison compares two LTV scenarios so you can see this tradeoff.

Formula

Debt Service = amortized payment(refi_loan, refi_rate, refi_term)

How Kaison Uses This

Calculated from your refi LTV, rate, and term inputs.

Example

75% LTV on $185k ARV at 7.5% / 30yr = $1,044/mo

Pro Tip

A 0.5% rate improvement saves ~$50/mo on a $140k loan. Shop multiple DSCR lenders.

Related Terms

Net Operating Income (NOI)

Gross income minus operating expenses, BEFORE debt service.

Monthly Cash Flow

What you actually keep after all expenses and debt service.

Refinance Loan-to-Value (Refi LTV)

How much of the property's value you borrow at refi — 75% pulls more cash, 70% has better cashflow.

Educational content only. Consult a CPA or attorney for advice specific to your situation.