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Dictionary

reverse' annu'ity mort"gage

a type of home mortgage under which an elderly homeowner is allowed a long-term loan in the form of monthly payments against his or her paid-off equity as collateral, repayable when the home is eventually sold. Abbr.: RAM Also called equity conversion, reverse mortgage.

Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.

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