Pledged Account Mortgage (PAM)
Method of using the buyer's down payment on a home as an interest bearing collateralized account to help offset the mortgage amortization process. The home down payment is used to supplement the early payments of a mortgage helping to qualify the mortgagor for a loan. The supplemental payments are incrementally decreased usually over the first five years of a loan to the point where the entire loan payment is assumed by the mortgagor without any supplementation. The concept of the loan is based on the theory the pledgor's increase in personal income will offset the reduction in supplemental payments by the pledged account mortgage.
Popular Real Estate Terms
Records maintained as evidence of ownership of the home and any of its contents. ...
Gradual deterioration of land due to nature such as because of floods, hurricanes and storms. Gradual decline in the value of real estate because of poor market and economic conditions. ...
Language commonly used in a fee simple title conveyance. The significance is whether the title is clear and can be passed on to the purchaser's estate including all heirs and those who may ...
A mortgage on which the interest rate is constant, but the payments are structured to increase, so the loan is paid off much earlier. ...
Net return on a real estate investment. It equals the income less the expenses associated with the property. ...
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Appropriateness of the soil for the designated purposes. An example is soil suitable for the growing of vegetables and fruit, or grazing for horses. ...
Income reporting to the Internal Revenue Service using form 1099 stating income earned. For example, An employing real estate broker uses form 1099 to report commissions earned by a real ...
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