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
Requires collateral to secure the debt. An example of collateral might be one's home. ...
What is real estate speculation? The term real estate speculation may have a difficult definition, but explaining it may be easier. Think of the stock market, buying stocks when they are ...
The smallest lot area required for building under the municipal zoning code. For example, a municipal zoning code requires all building lots to have a minimum lot area of 1/4 of an acre in ...
House that can be bought at a low price because it is in poor condition. A buyer who is handy may find it attractive because he can personally make the needed repairs without hiring others. ...
See accommodation endorser, maker, or party. ...
A rule that the price of a house should not exceed about 2 to 2.5 times your family's gross annual earnings. Example : If annual gross income is $70,000, the highest price one could afford ...
Surface level of water. ...
Roof having a concave angle. ...
Tax assessed on a transfer of property made without adequate legal consideration. This tax is based on the appraised value of the property at the time of transfer.Also, gifts of property ...
Have a question or comment?
We're here to help.