Shared appreciation mortgages seem like a good idea because: The post-modification shared appreciation mortgages usually lower the principal balance to the current value of the house, and have a phasing-out shared appreciation clause.

Is a shared appreciation mortgage a good idea?

Shared appreciation mortgages seem like a good idea because: The post-modification shared appreciation mortgages usually lower the principal balance to the current value of the house, and have a phasing-out shared appreciation clause.

How does shared appreciation work?

A shared appreciation mortgage (SAM) is when the borrower or purchaser of a home shares a percentage of the appreciation in the home’s value with the lender. In return for this additional compensation, the lender agrees to charge an interest rate that is below the prevailing market interest rate.