Shared Equity Mortgage

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DEFINITION of 'Shared Equity Mortgage'

Joint ownership of real estate by both lenders and property dwellers. When the property is eventually sold, the owners share in the proceeds, or equity. In the meantime the property occupants benefit from interest and property tax write-offs.

BREAKING DOWN 'Shared Equity Mortgage'

Equity sharing is a great way for homeowners to join forces with lenders to create a win-win scenario for both. The former are able to get into a home at a lower interest rate than might otherwise be possible, while the latter get the benefit of an increasing real estate price without the hassles of being a landlord.

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RELATED FAQS
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    Even though it is normally assumed most people know their home equity, many are still confused about the topic. It is an ... Read Full Answer >>
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    Depending on the need, an individual or business may take out a form of credit that is either open- or closed-ended. While ... Read Full Answer >>
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    The most common types of closed-end credit used by both businesses and individuals are mortgages and auto loans. Businesses ... Read Full Answer >>
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    Typical requirements for a consumer to qualify for closed-end credit include satisfactory income level and credit history, ... Read Full Answer >>
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