DSCR Direct

How to Compare DSCR Loan Options

When financing a rental property, small differences in rate, down payment, or loan terms can have a big impact on cash flow and total cost. This comparison tool lets you evaluate two scenarios side by side so you can make a data-driven decision about which loan structure works best for your investment strategy.

Common comparisons include: putting 20% down vs. 25% down (lower down payment means higher LTV and potentially higher rate, but preserves cash for other deals); choosing a 3-year prepay vs. 5-year prepay (longer prepay terms often come with lower rates); or comparing different rate quotes from the DSCR Direct pricer.

The tool calculates DSCR ratio, monthly cash flow, cash-on-cash return, and total cost over 5 years for each scenario. Metrics are highlighted to show which scenario performs better on each dimension. Keep in mind that the best choice depends on your investment goals - a higher down payment might improve cash flow but reduce your cash-on-cash return.

For live rate quotes to compare, use the DSCR Direct pricer. You can run different scenarios (varying LTV, prepay term, lock period) and use the actual rates in this tool for an apples-to-apples comparison.