What is a Shared Appreciation Mortgage?
In the Boston area, with the some of the most expensive real estate in the country, local colleges and universities need incentives to attract talented academics. One such perk that we see a lot in divorces involving academics is the Shared Appreciation Mortgage (SAM). The same is typically a no-interest loan equal to a percentage (sometimes 50%) of the purchase price of a house, with the college or university retaining that same interest in any appreciation. When the property is sold, the college or university will be entitled to its original principal plus a percentage of any capital gain.
