Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

Shared equity mortgage

Read a random definition: ides

A quick definition of Shared equity mortgage:

Shared equity mortgage: A type of mortgage where the lender owns a part of the house, usually half. This helps people with lower incomes get a mortgage because the lender has more security. When the house is sold, the lender gets their loan back plus their share of the profits. Shared equity mortgages may have rules about who can buy the house and how much it can be sold for later on.

A more thorough explanation:

Shared equity mortgage is a type of mortgage where the lender keeps a portion, normally half, of the equity in the house. This means that when a house is sold, the lender will be paid all of the loan plus their portion of the profits.

Shared equity mortgages are designed to help lower income individuals receive mortgages because the lender has more security by owning part of the property. However, shared equities may come with other requirements like limiting who can purchase the home or limit the sale price later on because shared equity lenders are often trying to limit housing costs for low income individuals.

Let's say you want to buy a house for $200,000 but you only have $20,000 for a down payment. You could get a shared equity mortgage where the lender puts up the other $80,000 for the down payment. In return, the lender would own half of the equity in the house.

Now, let's say you sell the house for $300,000. The lender would get their original $80,000 back plus half of the $100,000 profit, which would be $50,000. You would get the other $170,000.

This type of mortgage can be helpful for people who don't have a lot of money for a down payment but still want to buy a house. It can also be helpful for lenders because they have more security by owning part of the property.

shared custody | shareholder

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.