Debt Service Arlington MA

Looking for information on Debt Service in Arlington? We have compiled a list of businesses and services around Arlington that should help you with your search. We hope this page helps you find Debt Service in Arlington.

Pennington Associates
(781) 641-9855
P.O.Box 273
Arlington, MA
Tyler Lynch, P.C.
(617) 354-3814
186 Alewife Brook Parkway
Cambridge, MA
CBIZ Tofias
(617) 761-0600
350 Massachusetts Avenue
Cambridge, MA
DiCicco, Gulman & Company LLP
(781) 937-5300
150 Presidential Way, Suite 510
Woburn, MA
Walsh,Jastrem, & Browne, LLP
(617) 227-3333
1 Liberty Square
Boston, MA
Amir A. Ali CPA, LLC
(617) 510-5786
697 Broadway, #5
Somerville, MA
Accounting Management Solutions
(781) 419-9200
800 South Street, Suite 195
Waltham, MA
David J. Prothero, CPA
(617) 871-6602
859 Massachusetts Avenue, Suite R
Cambridge, MA
DimesWorth, Inc.
(617) 577-1165
170 Gore Street, Suite 103
Cambridge, MA
Abrams Little-Gill Loberfeld PC
(617) 738-5200
1330 Boylston Street, 5th Floor
Chestnut Hill, MA

What is a Debt Service?

Debt service refers to the payments made over a specific timeframe

that are used as repayment of interest and principles on a debt. A home or mortgage loan is an example of a debt service. The typical home loan has a term of 30-years. Throughout the life of the loan, borrowers are obligated to submit timely payments to their home loan lender.

Likewise, borrowers with a home equity loan must send monthly payments to the second lien holder. Once the lender receives payment, monies are applied to the interest and principle. At the outset, the bulk of payments reduce the interest owed, wherein the mortgage balance remains about the same. Gradually, a reversal occurs and the bulk of payments start to reduce the balance.

In the real estate market, many buyers determine a good investment by calculating the debt service ratio on a property. This is the ratio of income to debt payments. For a property to be a good investment, the debt service ratio must be high. For example, if a real estate investment generates a $40,000 a year, and the mortgage payments are $30,000, this is good deal because the cash flow is positive. Moreover, positive cash flow makes it easier to investors to borrower additional funds for the property.


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