Modelling Reverse Mortgages
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.
Asia Pacific Journal of Management
TSE, Yiu Kuen.
Modelling Reverse Mortgages. (1995). Asia Pacific Journal of Management. 12, (2), 79. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/215
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