A loan in which the lender receives a share of the increase in value of the property in return for a reduction in the initial rate of interest,is called a(n):

Question

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A shared appreciation mortgage is a type of loan in which the lender agrees to receive a portion of any increase in the value of the property in exchange for a lower initial interest rate. This can be a good option for borrowers who want to reduce their monthly payments in the short term, while potentially benefiting from any long-term increase in the property's value.

A Loan in Which the Lender Receives a Share of the Increase