GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Shared-Appreciation Mortgage


Synonyms:contingent interest, equity release mortgage
Acronyms &
abbreviations:
SAM
Filed Under: financial-banking, investments, mortgages
Tags: banking, lender, loan, mortgage
 

Definition of shared-appreciation mortgage (SAM)

shared-appreciation mortgage (SAM)
1. A type of mortgage loan where the lender offers a below-market interest rate in exchange for profit sharing when the property is sold. This is typically only done with private funds/lenders.

Related Terms and Acronyms:

  • buy-down mortgage   A home loan in which the lender charges below-market interest in exchange for discount points.
  • cooperative mortgage   A loan that allows the borrower to buy into a co-op project.
  • creative financing   An innovative or unusual way of structuring a home loan that allows the buyer to buy the house.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • loan   Letting another party use something of value temporarily.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • mortgage rate   The interest rate on a mortgage loan.
      ➥  You can compare mortgage rates using this website by clicking 'Rates' above.
  • private lender   A lender not associated with a traditional lender.
  • sub-prime mortgage   A mortgage loan that is granted to a borrower who is considered sub-prime (has a less-than-perfect credit report). Sub-prime borrowers have either missed payments on a debt or have made late payments. Lenders charge a higher interest rate to compensate for potential losses from customers who may default on the loan.
  • teaser rate   Often called the introductory rate, it is the below-market interest rate offered to entice customers to switch credit cards or lenders.

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