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
Highest amount a property is worth equal to the amount that would have to be paid to buy equivalent property in the market place. ...
Maximum interest rates a borrower might pay for an adjustable rate mortgage. It controls the amount of change in the rate when it adjusts. The first number is the maximum increase allowed ...
An affiliate of the National Association of Real Estate Boards, engaged in educational programs and publications for its members. Its publications include Real Estate Perspectives and Real ...
Prepayment to a landlord for refurbishing the unit beyond what would be anticipated from customary wear and tear. It is like a damage deposit. The security deposit may be refunded at the ...
Fee a borrower is assessed for the right to make a loan payment before the due date. An example is the prepayment charge for paying-off a mortgage early. ...
Partially amortized and requiring a lump sum (balloon) payment at maturity. ...
The amount of rent a property could command in the open market. See also market rent. ...
Right to enter and start construction or furnishing property that is in the process of being purchased. ...
The definition of cooperative housing is well known by real estate agents because they are often involved in the selling process, in most cases. Cooperative housing is a form of ...
Have a question or comment?
We're here to help.