Posted on: 28th Aug, 2009 06:28 am
what is shared appreciation mortgage
harrywallace07
Welcoem to the forum
For Shared Appreciation Mortgage the buyers need to pay less interest rate to the lenders providing a share of the future appreciation value of the home. The rate if interest is based on the the appreciation
One of the requiremsnts is that the buyer shoudl nto have owned ahouse in the last 3 years
Good luck and feel free to ask
Welcoem to the forum
For Shared Appreciation Mortgage the buyers need to pay less interest rate to the lenders providing a share of the future appreciation value of the home. The rate if interest is based on the the appreciation
One of the requiremsnts is that the buyer shoudl nto have owned ahouse in the last 3 years
Good luck and feel free to ask
The share of the appreciated value is known as the contingent interest, which is determined and due at the sale of the property or at the termination of the mortgage.
you need to take care for:
how the appreciation will be determined: There are 2 ways,an appraisal or sale. In either case, if you (the borrower) do not have the appreciation money to pay the lender at the time it is due, the lender may force a sale.
what happens if the house does not appreciate in value or depreciates?
you need to take care for:
how the appreciation will be determined: There are 2 ways,an appraisal or sale. In either case, if you (the borrower) do not have the appreciation money to pay the lender at the time it is due, the lender may force a sale.
what happens if the house does not appreciate in value or depreciates?
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