How Shared Appreciation Mortgages Work

A shared appreciation mortgage (SAM) trades a below-market interest rate for a share of the home's future appreciation. At sale or refinance, the lender collects its percentage of the gain above the original value. The math is a trade-off: lower monthly payments now versus a lump-sum obligation later. If the home appreciates slowly or you hold it for decades, the interest savings can exceed the appreciation share; if values surge, the lender's share can be large. This calculator compares the SAM payment against a standard market-rate loan and nets the interest saved against the appreciation due at your planned exit.