Reverse annuity mortgage,
Definition of Reverse annuity mortgage:
Loan secured by a borrowers accumulated equity in his or her home, and where the borrower receives periodic payments (instead of a lump sum) from the lender (or from an annuity set up from the loan-proceeds). Preferred typically by older or retired individuals or couples (who have paid out the original mortgage and continue to live in the property) upon whose death the property is sold to pay off the loan. RAM is one of the means of converting a frozen asset (home) into a liquid asset (cash).
Meaning of Reverse annuity mortgage & Reverse annuity mortgage Definition