shared-appreciation mortgage

shared-appreciation mortgage definition - business

shared-appreciation mortgage

An unusual real estate loan introduced in the early 1980s in which the lender offers a below-market interest rate in return for sharing a portion of any profits when the real estate is sold. Shared-appreciation mortgages are most popular when rates on mortgage loans are high.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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