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Best Shared Appreciation Mortgages | December 2020

Shared appreciation mortgages offer below-market interest rates in exchange for a share in the profit of your home when it is sold. This can help pay less in interest. Shared appreciation mortgages are very rare in the United States, but there are other alternatives if you are looking for home equity financing.

Shared appreciation mortgages (aka SAMs) are a type of mortgage that offers a lower interest rate if you agree to give your lender a share of any increase in the value of your home. They are a re-run of a home financing model that was first introduced in the 1980s. Mortgage rates were very high and SAMs provided a way to make homeownership more affordable. This model never really took off in the United States and they are still extremely rare.

Shared equity agreements, on the other hand, are a similar financing product that is becoming increasingly popular. Instead of selling a chunk of your home's appreciation for lower interest rates, shared equity agreements offer cash with no monthly payments or interest rates.

The list below shows our top picks for shared equity agreements.