What is a home appreciation mortgage?

A home appreciation mortgage is a great way to earn a lower interest rate on a mortgage which can ease the financial burden of monthly payments. Monthly payments are significantly less, since they only include insurance, property taxes, and maintenance.

What is a shared appreciation loan?

Say you bought a home for $330,000 with a shared appreciation loan that gives the lender a 20 percent share. A decade later, you sell the home for $485,000. At that point, you’d owe your lender $31,000, or its appreciation share. SAMs are similar to shared equity mortgages in that they both offer a more affordable route to homeownership.

Are Shared Appreciation Mortgages a good alternative to a HELOC?

If you already own a home and want to access it’s equity, you can still benefit from a shared appreciation mortgage, which can be a great alternative to a Home Equity Line of Credit (HELOC). This allows homeowners as well as home buyers the opportunity to access their home equity now in exchange for a piece of their future home appreciation.