annual debt service(redirected from Annual Debt Services)
Annual Debt Service
annual debt service
The total of all principal and interest payments made over the course of a year.This figure provides one of the analytical tools for mortgage lenders of income-producing properties, who compare net annual income of the property to annual debt service on the proposed mortgage to arrive at a debt service coverage ratio. Acceptable ratios depend on the particular industry and on lending market conditions at the time.