What type of mortgage allows a retired couple to negotiate a loan against the equity in their property and receive monthly checks for life?

The type of mortgage that allows a retired couple to negotiate a loan against the equity in their property and receive monthly checks for life is a reverse annuity mortgage. This financial product is specifically designed for homeowners, typically seniors, who wish to access the equity in their home to supplement their income during retirement.

With a reverse annuity mortgage, the lender makes payments to the borrower, using the home's equity as collateral, rather than the borrower making payments to the lender. This arrangement can take the form of monthly checks or a lump sum, which can provide the couple with financial support throughout their retirement years. Importantly, the loan does not need to be repaid until the homeowners sell the home, move out, or pass away, allowing them to live in the home without the burden of monthly mortgage payments.

In contrast, other mortgage types listed do not provide the same benefits for retirees. A fixed-rate mortgage requires regular monthly payments from the borrower, which may not be suitable for those on a fixed income. A home equity loan also involves taking out a loan against the home’s equity, but it typically requires repayment with interest and does not offer the same monthly cash flow benefits. An adjustable-rate mortgage comes with fluctuating interest rates and monthly payments, making