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
Assures that the title is free of any legal claims including encumbrances. It includes covenants of seizin, freedom from encumbrance, express warranties of title, right to quiet enjoyment, ...
Written agreement between two or more parties to extend the terms of a document. ...
Unexpected increase in the price of property not due to any effort on the owner's part. An example is when the appraised value of a house increases because of a population increase in the ...
Modification made by a municipality to the zoning of a locality. A change in zoning typically has to be requested and approved by a zoning commission and then the legislative body. It can ...
Sewer system built into the streets of a neighborhood that is capable of accommodating the excess water flow of a heavy storm without backing up or flooding. ...
A municipal or county local government board that resolves zoning disputes. ...
Individuals who are legally entitled to inherit money and property when someone dies. ...
The interest rate charged for a loan. For example, John obtained a $10.000 loan from the bank charging 10% interest. ...
An early term used to describe all types of real estate property, improvements to the land, and all rights accruing to the land. ...
Have a question or comment?
We're here to help.