Finance
In New Mexico, a 'participatory mortgage' or 'shared appreciation mortgage' allows a lender to receive:
AA fixed percentage of the property's rental income
BA portion of the property's appreciation in value at sale or refinancing, in exchange for offering a below-market interest rate✓ Correct
COwnership of the property after 20 years
DMonthly profit-sharing from the borrower's business
Explanation
A shared appreciation mortgage (SAM) offers the borrower a reduced interest rate in exchange for the lender participating in a portion of the property's appreciation when sold or refinanced — aligning the lender's and borrower's interests in the property's performance.
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