Debt Service
Direct definition
Debt service is the total amount of principal and interest payments required to keep a loan current over a given period.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Debt service is often discussed in the context of investment property financing, where a property's rental income is compared to the debt service on its loan to gauge cash flow. It can also refer more generally to any borrower's required loan payments.
Why it matters
Comparing rental income to debt service helps investors and lenders assess whether a property can support its own financing.
Where you may see it
- DSCR loan application
- Rent roll
- Underwriting file
A real-world example
Educational and illustrative only
A common misunderstanding
Debt service is not the same as total housing expense; it typically excludes taxes, insurance, and HOA dues unless specifically included by the calculation method used.
Ask Vabasso AI
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026