Want to create an interactive transcript for this episode?
Podcast: BiggerPockets Daily
Episode: How Do DSCR Lenders Calculate Your Interest Rate?
Description: As interest rates finally start to fall after years of painful hikes, the DSCR (Debt Service Coverage Ratio) loan has made rental property investment attractive once more. But how are DSCR loan interest rates calculated, and what influences the final rate you get quoted? In this episode, we take a deep dive into the DSCR loan process and explain how lenders arrive at those interest rates, from the initial base rate to loan-level pricing adjustments (LLPAs).We’ll break down the key metrics—LTV ratio, DSCR ratio, credit score, and secondary factors like loan size...