What does Debt Service mean?

Debt service is the total amount of money that is required to be paid on a debt over a given period of time. Debt service typically includes both the principal, or the amount of money that was borrowed, and the interest, or the cost of borrowing the money. Debt service can be calculated on a monthly, quarterly, or annual basis, and it can be used to determine the affordability of a loan or the risk of default.

Related Terms

Junior Mortgage PITI (Principal, Interest, Taxes, Insurance) Loan-To-Value-Ratio (LTV) Acre Modified Gross Foreclosure Buy-Down Mortgage Lease Proration Housing Expense Ratio Bed Tax Annual Mortgagor Statement Shared-Equity Transaction Federal Housing Administration ( FHA) Initial Interest Rate Loan Commitment Gross Up For Sale By Owner aka FSBO