Shared Appreciation Mortgage (SAM)


Definition of "Shared Appreciation Mortgage (SAM)"

Tara Panaccione real estate agent
Tara Panaccione, Real Estate Agent One Sothebys International Realty

A mortgage on which the borrower gives up a share in future price appreciation in exchange for a lower interest rate and/or interest deferral. SAM's in the private market had a brief flurry in the early '80s but died out quickly and an attempt to revive them in 2000 was unsuccessful. Some cities on the West Coast offer second mortgage SAM's to residents with incomes below some maximum. Reverse mortgage SAM's have also appeared in small numbers.

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