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
Person or business that benefits from the work of another person or business. The recipient has not compensated the other party for this gain. In law, the one being enriched at the ...
Not attached to any parcel of land but merely a personal right to use the land of another. ...
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Money set aside for a possible loss, such as from a fire. ...
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