英文摘要 |
The real estate reverse mortgage (RM) system has been highly valued and widely accepted. However, while the valuation of the loanable annuity of RM has been previously discussed, the content of the valuations has mostly been established under the assumption of "no occurrence of prepayment of the loan contract". In reality, RM contracts in many countries do not prohibit the prepayment by the borrower, which thus implies that the lenders of the RM contract present a free prepayment option to borrowers. Therefore, in this study, variables such as the interest rate, housing price, and the force of mortality have comprehensively been taken into account to assess the prepayment option. The numerical simulation results show that the value of this prepayment option accounts for 3.79 percent of the total RM amount, which reflects the value of the rights and interests of the RM borrower's flexibility in dealing with the property, in addition to the risk cost of early termination of the contract, which may be of concern to RM lenders. |