Plain-English explanation
Rising rates compress refinance proceeds and squeeze DSCR.
Examples
- 5/1 ARM resetting from 4.5% to 8.0% wiped cash flow.
Common mistakes
- Using short-term debt on a long-term hold.
Related questions
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Risk Management
Interest Rate Risk
Exposure to rate increases on adjustable or maturing fixed-rate debt.
Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice
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