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Shared appreciation mortgage |
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Shared appreciation mortgageA loan that allows a lender or other party to share in the borrower's profits when the home is sold.Shared appreciation mortgageA mortgage in which a borrower pays a below normal rate of interest to the lender on the understanding that the latter shares a proportion of the appreciation of the property.Similar MatchesCapital appreciation fundCapital appreciation fundSee: Aggressive growth fund Capital appreciationCapital appreciationSee: Capital growth AppreciationAppreciationIncrease in the value of an asset. Shared AppreciationShared AppreciationThe gaining or retaining of equity in a property by someone other than the buyer. For example: the seller retains a 25% interest in the property. This makes the buyer responsible for only 75% of the purchase price and, therefore, lowers the necessary financing by 25%. This obviously makes the property more affordable. By agreement, expenses are shared as well as any increase in value when the property is sold. Statement of Information (SI): A confidential information statement completed by the buyer, seller and borrower in every transaction where a policy or policies of title insurance are requested. Allows the title company to competently search documents affecting the property to be insured, documents which may not refer to said property. Allows title companies to differentiate between parties with similar names when searching matters such as liens and court decrees. AppreciationAppreciationA rise in the value of a country's currency on the exchange market, relative either to a particular other currency or to a weighted average of other currencies. The currency is said to appreciate. Opposite of "depreciation." Further SuggestionsShared Appreciation Mortgage (SAM)Appreciation Currency appreciation Real appreciation or depreciation Stock Appreciation Right (SAR) Capital appreciation or depreciation |
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