Reverse Annuity Mortgage (RAM)
Definition of "Reverse Annuity mortgage (RAM)"
Mortgage where the lender pays a borrower a fixed monthly payment based on the value of the property. It allows the borrower to receive monthly receipts against the equity in his or her home. It is designed for senior citizen who own their homes and require additional funds to pay current living expenses, but do not wish to sell their homes. At the end of the payment term, usually 10 or 15 years, the mortgage on the borrower's home equals a predetermined sum so that the value of the equity is reduced by the amount. The loan is not repaid until sale of the property or the death of the borrower when it is settled through normal probate procedures.
Popular Real Estate Terms
When a real estate company switches from one accounting method to another. ...
Inverted gable roof design where the two side slope upward from the center to the eaves with a valley in the middle. The roof resembles the wings of a butterfly, hence, the name. ...
Income derived from a collection of asset investments. Real property investments produce rental and lease payment income. Investments in mortgages and other long term debt instruments ...
Room with a bathtub, shower, toilet, and sink. Most homes have more than one bathroom increasing their value. ...
market in which there are comparatively few bids to buy or offers to sell real estate. The term relates to a single investment or to a particular investment market, such as the real estate ...
The right to deviate from the use of land prescribed by an existing zoning ordinance. ...
Legal action by an owner of property to oust or exclude an individual or business form using the property. ...
Generally speaking, indemnity defines a legal principle and an ensuing agreement to calculate the amount of compensation a party is entitled to resulting from a specific financial loss they ...
Mortgage where the lender pays a borrower a fixed monthly payment based on the value of the property. It allows the borrower to receive monthly receipts against the equity in his or her ...
Have a question or comment?
We're here to help.