google bot detected Reverse Annuity Mortgage Ram | Real Estate Glossary | Realestateagent.com

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.



Related Real Estate Glossary terms

Related Real Estate FAQ