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

The primary purpose of a Reverse Annuity Mortgage (RAM) is to allow elderly individuals to access home equity. This financial product is specifically designed for homeowners aged 62 or older, enabling them to convert part of their home equity into cash without having to sell their house or make monthly mortgage payments. Instead, the lender makes payments to the homeowner based on the equity accumulated in their property. This can provide financial relief for various needs such as medical expenses, living costs, or even funding retirement activities.

In contrast, while aiding first-time homebuyers or providing low-interest loans may be beneficial in other contexts, these do not align with the focus of a RAM. The concept of creating monthly payments for young families also diverges from the intent behind RAM since it specifically deals with converting home equity for individuals in their retirement years rather than establishing new mortgages for younger families. Thus, option B accurately captures the essence of what a Reverse Annuity Mortgage is designed to achieve.