Shared-Appreciation Mortgage - SAM
- Shared-Appreciation Mortgage - SAM
- A special kind of mortgage that allows the purchaser to pay a given amount of the loan balance to the lender by passing along a portion of the gain in value of the property. In return for this additional compensation, the lender agrees to charge a rate of interest on the loan that is below the prevailing market rate. Shared-appreciation mortgages allow the lender to recoup the balance of the "interest" charged when the property is sold.
Shared-appreciation mortgages allow the purchaser to deduct the amount of gain passed to the lender as interest in the year paid when the property is sold. However, this type of home loan often has a time limit on when the balance must be repaid (e.g., 10 years). If the property is not sold by the deadline, the remaining balance can usually be refinanced at the prevailing market rate.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Shared appreciation mortgage — A shared appreciation mortgage or SAM is a mortgage in which the lender agrees as part of the loan to accept some or all payment in the form of a share of the increase in value (the appreciation) of the property. In the US A shared appreciation… … Wikipedia
Shared Appreciation Mortgage — ( SAM) A mortgage with a low rate of interest, offset by giving the lender some portion of the appreciation in the value of the underlying property. Bloomberg Financial Dictionary … Financial and business terms
shared-appreciation mortgage — /shaird euh pree shee ay sheuhn/ a type of mortgage that carries a smaller down payment or lower interest rate than usual in return for the lender s sharing in the appreciation of the property at some future date, as at the time of its sale. Abbr … Universalium
shared-appreciation mortgage — /shaird euh pree shee ay sheuhn/ a type of mortgage that carries a smaller down payment or lower interest rate than usual in return for the lender s sharing in the appreciation of the property at some future date, as at the time of its sale. Abbr … Useful english dictionary
mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… … Black's law dictionary
mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… … Black's law dictionary
SAM — /sam/, n. 1. surface to air missile. 2. Space Available Mail: a special air service for sending parcels weighing up to 15 lbs. (6.8 kg) to overseas members of the armed forces: only the regular parcel post rate to the U.S. port of shipment is… … Universalium
SAM — See: Shared Appreciation Mortgage … Financial and business terms
Ocwen — Financial Corporation (NYSE: OCN) is a provider of residential and commercial mortgage loan servicing, special servicing and asset management services. Ocwen is headquartered in Atlanta, Georgia, with additional offices in West Palm Beach… … Wikipedia
United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… … Universalium
