Open AccessOn the reverse mortgage in China: An Empirical Analysis Based on risk neutral pricing method
Author(s) -
Kaichuang Dai
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/768/5/052010
Subject(s) - depreciation (economics) , value (mathematics) , mortgage underwriting , mortgage insurance , loan , commercial mortgage backed security , shared appreciation mortgage , business , cash , house price , property value , property (philosophy) , actuarial science , economics , finance , monetary economics , real estate , microeconomics , key person insurance , insurance policy , profit (economics) , philosophy , epistemology , machine learning , financial capital , computer science , capital formation
“Reverse mortgage loan of housing" refers to the mortgage of housing property rights to financial institutions by the elderly with housing property rights. After comprehensive evaluation of borrower’s age, expected life, the present value of house, future appreciation and depreciation and other situations, the value of the house is divided into parts, and the cash is paid to the borrower on a monthly or annual basis until the borrower’s death.