Carrying Costs

Definition

• The expenses of maintaining a home or property. For example, mortgage payments, property taxes, and the expenses of utilities, repairs and upkeep.

Synonyms
utility costs, carrying charge, mortgage, overhead, lease, maintenance

Related Terms and Acronyms

• Debt/Equity Ratio — Definition,
  • A comparison of debt and equity used to measure the health of a business.
• Gross Debt Service (GDS) — Acronym, Very Important,
  • The total monthly mortgage (or rent) payments, property taxes, utilities and maintenance fees as a percentage of gross monthly income.
  ➥ Used by mortgage lender underwriters to determine one's ability to qualify for a mortgage loan.
• Total Debt Service (TDS) — Acronym, Important,
  • The ratio of a borrower's total monthly debt payments to his or her monthly gross income. Lenders use this ratio to determine how much of a loan a borrower is qualified for.