reverse annuity mortgage

noun

1. a type of home mortgage under which an elderly homeowner is allowed a long-term loan in the form of monthly payments against their paid-off equity as collateral, repayable when the home is eventually sold. : RAM

Example Sentences

The loan was arranged by the San Francisco-area Reverse Annuity Mortgage Program, a pilot project sponsored by the Ford and San Francisco Foundations and the Federal Home Loan Bank Board to help elderly homeowners who are property rich but cash poor.

From Time Magazine Archive