What is one characteristic of a shared appreciation mortgage?

A shared appreciation mortgage is designed to align the interests of both the borrower and the lender with respect to the property's value. In this type of mortgage, the borrower agrees to a lower interest rate in exchange for the lender's right to share in any appreciation of the property's value over time. This means that when the borrower eventually sells the home, the lender receives a percentage of the increased value, which can be a financial benefit for the lender.

This arrangement incentivizes both parties: the borrower enjoys a lower monthly payment while the lender has the potential for profit as the property value increases. The shared appreciation feature is especially appealing in real estate markets with significant price increases.

In contrast, the other options do not accurately characterize a shared appreciation mortgage. While the loan may have features like being assumed by another party or requiring a down payment, these do not define what makes a shared appreciation mortgage unique. The essential characteristic is indeed the lender's ability to participate in the appreciation of the property's value, which is why the answer is B.