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
The word’s etymology reflects several diverse or seemingly unrelated topics under the same umbrella. As part of everyday discourse, you’ll find the term “omnibus” ...
Angle from north or south of a property. When a real estate appraiser does surveying, it is looked at clockwise from north. It may assist in determining the form or boundaries of land. ...
The total return from holding a real estate investment for the holding period of time. The computation follows: For a mutual fund investing in a real estate, the return is in the form ...
Something that is illegal. An example is an unenforceable debt because it has exceeded the statute of limitations. ...
Legal rule, principle, or tenet. ...
Eight-by-four sheet of material attached to a wall's studs. It can be made attractive by wallpapering or painting. ...
The process of upgrading unusable land through making physical improvements. For example, swamp land can be drained and filled in order to make it usable. Barren land can be reforested by ...
The basic definition of an acquisition loan is the kind of loan that gives a company the funds necessary to make a purchase. The type of investment depends on the company’s activity, ...
Exchange of products or property between individuals in which no cash is paid. ...
Have a question or comment?
We're here to help.