Stress Test · Rate shock at renewal
Test DCR through a rate shock.
Model what happens to debt service and DCR when rates jump at renewal. Highlights the first year DCR breaches the 1.20 (MLI Standard) and 1.10 (MLI Select) minimums — so you know if a refinance becomes a coverage problem.
This is the amort that was applied when the current term began — renewal amort will be this minus the years elapsed in the term.
Stressed rate at renewal: 7.25%
Monthly P+I today
$52,074
at 5.25%
Monthly P+I post-renewal
$64,331
at 7.25% on $9,430,271
Payment jump
$12,257
+23.5% per month
First year DCR < 1.20 (MLI Standard)
No breach
First year DCR < 1.10 (MLI Select)
No breach
| Yr | NOI | DS current | DS stressed | DCR current | DCR stressed | CF stressed |
|---|---|---|---|---|---|---|
| 1 | $950,000 | $624,892 | $624,892 | 1.52x | 1.52x | $325,108 |
| 2 | $973,750 | $624,892 | $624,892 | 1.56x | 1.56x | $348,858 |
| 3 | $998,094 | $624,892 | $624,892 | 1.60x | 1.60x | $373,202 |
| 4 | $1,023,046 | $624,892 | $624,892 | 1.64x | 1.64x | $398,154 |
| 5 | $1,048,622 | $624,892 | $624,892 | 1.68x | 1.68x | $423,731 |
| 6(renewal) | $1,074,838 | $624,892 | $771,973 | 1.72x | 1.39x | $302,865 |
| 7 | $1,101,709 | $624,892 | $771,973 | 1.76x | 1.43x | $329,736 |
| 8 | $1,129,251 | $624,892 | $771,973 | 1.81x | 1.46x | $357,279 |
| 9 | $1,157,483 | $624,892 | $771,973 | 1.85x | 1.50x | $385,510 |
| 10 | $1,186,420 | $624,892 | $771,973 | 1.90x | 1.54x | $414,447 |
Balance at renewal (end of Y5): $9,430,271 · ADS at current rate: $624,892 · ADS at stressed rate: $771,973