DOI QR코드

DOI QR Code

The Value of Reverse Mortgage Loans: Case Study of the Chinese Market

  • Wang, Ping (Department of Industrial & Information Systems, Graduate School of Public Policy and Information Technology, Seoul National University of Science and Technology) ;
  • Kim, Ji-Pyo (Graduate School of Public Policy and Information Technology, Seoul National University of Science and Technology)
  • 투고 : 2014.08.13
  • 심사 : 2014.11.11
  • 발행 : 2014.11.30

초록

This study contributes to addressing the problem of an aging population by providing important information that determines feasible monthly payments for the clients of Chinese reverse mortgage products and by promoting the implementation of reverse mortgages in China. The variables used in this study include mean values obtained from time series data, of the rate of increase of housing prices, and the probability value, interest rate, and mortality rate obtained through the geometric Brownian motion (GBM). For mortality rates, China Life Insurance female mortality rates (2000-2003) were used. This study aims to apply the main variables that affect reverse mortgage products in a monthly payment model based on Chinese financial market conditions, and determine loan values. In this study, Shanghai's reverse mortgage monthly payments, by age levels, were calculated through the loan-to-value (LTV) and payment (PMT) methods to evaluate the value of the reverse mortgages. Based on the optimal combination of the three factors of payment amount, loan interest rates, and the level of acceptance of prices, efforts must be made to extract the best value for the elderly. Only in this way can the interests of both lenders and borrowers be protected, by increasing the market share and economies of scale of the reverse mortgage industry and effectively improving the living standards of the elderly.

키워드

피인용 문헌

  1. The Impact of Asian Economic Policy Uncertainty : Evidence from Korean Housing Market vol.5, pp.2, 2014, https://doi.org/10.13106/jafeb.2018.vol5.no2.43
  2. FMOLS 모형을 이용한 상업은행 수익성에 대한 연구 : 금리 시장화의 시각에서 vol.9, pp.8, 2014, https://doi.org/10.13106/ijidb.2018.vol9.no8.41.
  3. Foreign Uncertainty and Housing Distribution Market in Korea vol.16, pp.12, 2014, https://doi.org/10.15722/jds.16.12.201812.5
  4. Dynamic Spillover for the Economic Risk in Korea on Global Uncertainty vol.17, pp.1, 2014, https://doi.org/10.15722/jds.17.1.201901.11
  5. Does Population Aging Contribute to Increased Fiscal Spending? vol.9, pp.4, 2014, https://doi.org/10.13106/jbees.2019.vol9.no4.23
  6. An Empirical Testing of a House Pricing Model in the Indian Market vol.7, pp.8, 2020, https://doi.org/10.13106/jafeb.2020.vol7.no8.033
  7. The Effect of the Reduction in the Interest Rate Due to COVID-19 on the Transaction Prices and the Rental Prices of the House vol.11, pp.8, 2014, https://doi.org/10.13106/jidb.2020.vol11.no8.31