What Is the Purpose of a RAM (Reverse Annuity Mortgage)

question 99

Multiple Choice

What is the purpose of a RAM (Reverse Annuity Mortgage) ?

• A) to provide homeowners with a mortgage on a condominium
• B) to enable home-owners to use their house to secure a loan from the bank
• C) to ensure that older people obtain a fair price for their homes when they decide to sell
• D) to ensure that retired older people do not lose their homes because of reduced post-retirement income

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Definitions:

Salvage Proceeds

The amount of money received from selling an asset after its useful life is over or it has been damaged beyond repair.

Start-Up Costs

Expenses incurred during the process of establishing a new business or project.

One-Time Activities

Non-recurring events or transactions that do not form part of the regular, ongoing operations of a business.

New Facility

A newly constructed or established building or infrastructure intended for a specific use or service.