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
Also called interim financing. A mortgage that provides the funds necessary for the building or construction of a real estate project. The project can be a residential subdivision, a ...
Represents a means of appraising a building by simply multiplying its square foot cost by the total amount of square feet in the structure being evaluated. Two or more buildings may then be ...
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 ...
The practice of acquiring land for a future use. For example, a franchising company is projecting rapid nationwide expansion over the next five years. In order to prepare for the expansion, ...
Unincorporated combination (roll-up) of limited partnerships in a real estate together as a group. It is usually more comprehensive, financially sound, and marketable than individual ...
One who has died with a valid will in effect. ...
a rental in which the lessor pays all operating costs such as taxes, utilities, insurance, and maintenance. It is usually a short-term lease and a common arrangement. Typically there is no ...
The definition of a service fee or brokers fee in real estate is a flat fee paid to a real estate agent or broker in addition to the commission for the sale or purchase. This is to cover ...
People say time is money. The old-age cliche applies more than ever in our case as we define what the Time Value of Money (TVM) means. You’ll find the term time value for money ...
Have a question or comment?
We're here to help.