Question:

What is a reverse annuity mortgage (RAM)?

Answer:

A reverse annuity mortgage (RAM) is a type of reverse mortgage product that allows a senior to receive lifelong payments from a bank or a specialized reverse mortgage lender and at death the real estate is transferred to the lending institution.

Usually, to qualify for a reverse annuity mortgage (RAM), the senior has to be over 70, their house needs to be fully paid off, and they should have demonstrated need for financial help to cover for medical bills or health care assistance.

The reverse annuity mortgage (RAM) is a type of lifetime reverse mortgage especially appropriate for elderly people with low to average income and in need of lifelong assistance - either financial or medical or both. Not every property and not everyone may be eligible under this program so you should check whether you or your spouse qualify for a reverse annuity mortgage.

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