A more thorough explanation:

Definition: SAM stands for shared-appreciation mortgage, which is a type of mortgage where the lender has the right to receive a percentage of the property's appreciation in value when it is sold or at a future date.

Example: If a borrower takes out a SAM with a lender, and the property's value increases by $100,000 when it is sold, the lender may be entitled to receive $10,000 (assuming a 10% shared appreciation agreement).

Explanation: This example illustrates how a shared-appreciation mortgage works. The lender and borrower agree to share in the property's appreciation, and the lender receives a percentage of the increase in value when the property is sold or at a future date. This type of mortgage can be beneficial for borrowers who may not have the funds for a large down payment or who want to reduce their monthly payments, but it also means that the lender has a stake in the property's value and may benefit from any increase in value.