A mortgage that is intended to enable older households to liquefy the equity in their home is the:

A reverse annuity mortgage (RAM) is designed specifically for older households who wish to convert the equity in their home into cash while still retaining ownership and the right to live in the home. This type of mortgage allows homeowners, typically aged 62 and older, to receive payments from the lender based on the equity in their home, rather than making monthly payments to the lender as with traditional mortgages.

The essential aspect of a reverse annuity mortgage is that it enables the homeowner to tap into their home equity without the need to sell the property or take on additional debt that requires repayment through monthly installments. Instead, the loan balance grows over time, and repayment occurs when the homeowner sells the house, moves out, or passes away. This approach provides financial flexibility for older adults, allowing them to manage retirement costs, healthcare expenses, or enhance their quality of life in retirement without losing their home.

In contrast, other types of mortgages, such as home equity mortgages and traditional mortgages, primarily involve either taking out a loan against existing equity to be paid back over time or regular mortgage payments for purchasing the home, focusing more on acquisition rather than liquidity for existing homeowners.