Title

Modelling Reverse Mortgages

Publication Type

Journal Article

Publication Date

1995

Abstract

A framework for analyzing reverse mortgages in a fixed interest rate environment as well as a variable interest rate environment is suggested. To analyze the risk and potential profit of a reverse mortgage, a proposal is made to calculate the expected present value of profit and the probability of loss as indicators of the viability of the loan. Using Singapore data, some estimates of these quantities for various levels of annuity payment under different circumstances are provided.

Discipline

Economics

Research Areas

Econometrics

Publication

Asia Pacific Journal of Management

Volume

12

Issue

2

First Page

79

ISSN

0217-4561

Publisher

Kluwer

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