- Appraisal rent schedule
- Part of the appraisal for a rental. The appraiser estimates what the property should rent for.
- Cash flow
- What’s left each month after the rent pays the mortgage and expenses.
- Cash-on-cash return
- Your yearly cash flow divided by the cash you put in. A quick way to compare deals.
- Cash-out refinance
- A new, larger loan that pays off the old one and gives you the difference in cash.
- Cash reserves
- Money left in the bank after closing, usually measured in months of payments.
- DSCR
- Debt service coverage ratio. Monthly rent divided by the full monthly payment.
- Down payment
- The part of the price you pay up front. The loan covers the rest.
- Equity
- What the property is worth minus what you owe on it.
- LLC
- Limited liability company. A business entity many investors use to own rental property.
- LTV
- Loan-to-value. The loan amount divided by the property’s value.
- Note rate
- The interest rate written on your loan.
- PITIA
- Principal, interest, taxes, insurance and association dues. Your full monthly payment.
- Prepayment penalty
- A fee for paying off the loan early. Common on DSCR loans, so ask up front.
- Short-term rental
- A property rented by the night or week, like an Airbnb or VRBO.
- Temporary buydown
- A credit, usually from the seller, that lowers your payment for the first one to three years.
Try the DSCR calculatorDon’t see a term? Call or text me at 781-820-4249.