A loan that enables older home owners to convert the equity they have in their homes into cash, usually in the form of monthly payments. A borrower does not qualify on the basis of income but on the value of his or her home. In addition, the loan does not have to be repaid until the borrower no longer occupies the property.
An instrument designed to aid elderly homeowners by providing them a monthly income over a period of years in exchange for equity they have acquired in their homes. RAM borrowers typically may obtain up to 80 percent of the appraised value of free-and-clear property.
A provision that allows an elderly homeowner to draw against the equity of a home without having to repay the loan for a specified number of years.
A mortgage given by a homeowner who desires to convert the equity in his or her house to an income-producing asset. The proceeds of the loan are paid out in periodic installments to the homeowner, thus giving the homeowner income until the proceeds paid out equal the face amount of the mortgage.
a loan that allows lower-income elderly Montana
Stream of monthly payments provided to homeowners through an annuity purchased by a loan against the owners' accumulated equity in their home.
A mortgage designed to use the equity value of a home as collateral for a loan funded in installments intended primarily to supplement living costs. Also called a reverse mortgage and may be insured by the FHA.
A loan under which the borrower receives monthly payments based on the equity he has accumulated in his property, payable upon death of the homeowner or sale of the property.
A non-traditional mortgage in which someone who owns their home free and clear (that is, has paid off all mortgages on the property) receives monthly payments from a lender for a short period of time, usually less than 10 years. At the end of the mortgage, the owners agrees to refinance the loan or sell the property to pay off the loan. Such payments from the lender are often beneficial for retired people, who know they won't be in a house for more than five or 10 years, because the payments can help them make tax and insurance payments. return top
A mortgage which uses present equity in the property fo fund monthly payments from the lender to the borrower-in lieu of the borrower receiving the proceeds of the loan in a lump sum.
Type of mortgage applicable to senior citizens in which the lender makes periodic payments to the borrower from the borrower's equity in their home, thus providing the borrower with a cash annuity.
a form of mortgage in which the lender makes periodic payments to the you using your equity your home as security.
a type of mortgage, designed for elderly homeowners with substantial equity, by which a lender periodically (monthly, for example) pays an amount to the borrower. The loan balance increases with interest and periodic payments, causing negative amortization.
A for a specified number of years (most often seven or 10 years), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. The lender sometimes has the option to call the loan, due within 30 days notice at the end of seven or 10 years. Also called "Super Seven" or "Premier" mortgage.
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as collateral for and repayment of the loan.
A mortgage for which the borrower pledges home equity in return for regular (monthly) payments, rather than a lump sum distribution of loan proceeds. Repayment is usually not required until the home is sold or the borrower's estate is settled, provided the borrower continues to live in the home and keeps current all taxes and insurance. See also Home Equity Conversion Mortgage.
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loan is paid in full. Also called a "release of mortgage."
A type of mortgage loan in which the lender makes periodic payments to the borrower. The borrower's equity in the home is used as security for the loan.
A mortgage wherein the lender makes payments to the purchaser, not vice versa. This allows older home owners to convert their home equity into cash. This contrasts with traditional home equity loans, where a borrower must qualify on the basis of income; instead, one qualifies on the basis of the value of his or her home. The loan need not be repaid until the property is sold.
A mortgage which uses equity in a property to fund periodic payments to the borrower untilthe equity is used up. It is equivalent to an annuity where the equity is the present value which, at a particular rate of interest, funds a stream of payments which will reduce the present value (the equity) to zero at term.
A type of mortgage where the equity in the home serves as security for periodic payments made by the lender to the borrower. Mortgage is generally paid out upon the sale of the property.
The homeowner receives monthly payments based on accumulated equity. The loan must be repaid at a prearranged date or upon the death of the owner or the sale of the property.
Mortgage used by the elderly in which the lender makes periodic payments to the borrower using the borrower's equity in the home.
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as security.[ quick index
A form of mortgage in which the lender makes periodic payments to the buyer, using the buyerâ€(tm)s equity in the home as security. This is becoming very popular as a means of supplementing a personâ€(tm)s income during retirement.
a reverse mortgage in which a lump sum is used to purchase an annuity that gives the borrower a monthly income for life.
a reverse mortgage in which the lump cash sum is used to purchase an annuity that provides a monthly income for life.
A system developed for an elderly property owner in which regular monthly payments can be received from a lender. When the total reaches a pre-determined amount, the owner begins repaying the loan or sells the property.
A loan developed for senior citizens to unlock a portion of their equity in their home without selling the property.
(RAM) A loan under which the homeowner receives monthly payments based on his or her accumulated equity.
a reverse mortgage coupled with an income-generating annuity (pages 120-21).
Loan available to older owners who have equity in their homes but need cash. Monthly payments are made TO the owners and the loan does not have to be repaid until the property is sold.
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home. The mortgage generally needs to be paid in full before this type of payment can be made. Also called a "release of mortgage" or a "reverse mortgage".
A mortgage in which the borrower receives periodic payments from the lender who uses the borrower's equity in the home as security.
A mortgage in which the lender makes periodic payments to the borrower using the borrower's equity as collateral and repayment of the loan. This type loan is well suited to equity-rich but cash-poor individuals such as retired seniors as they can use the equity in their home to acquire and repay the loan without having to make any repayments until they no longer use the subject property as their primary residence.
An arrangement in which a homeowner borrows against the equity in their home and receives regular monthly tax-free payments from the lender. A reverse annuity mortgage is also called reverse-annuity mortgage or home equity conversion mortgage.