Reserve Mortgage Pricing Model Under Random Rates Of Interest

Reverse mortgage loans originated in Europe and the United States developed countries, is to improve the quality of life for the elderly, protect the lives of older persons and the rise of a financial product. Mainly related to real estate appraisal, changes in interest rates, was ordered to expectations, social attitudes and financial market development, the impact of various factors. After years of development, the reverse pattern of maturing mortgages, the paper mainly to China's national conditions, to study the stochastic interest rate reverse mortgage pricing and risk assessment.Whether from old age for the elderly, or pension from the social pressure to reduce the angle. Development of effective old-age security, is critical for make up for inadequate social security, improving their living conditions, improve the quality of life for the elderly has a positive meaning. The housing of reverse mortgage is a successful model, worthy of our in-depth discussion. Especially in today's economy diversified, variable increase in interest rates were studied under the reverse mortgage has more significance.Existing domestic and foreign literature and research point of view, from a property value of starting a variety of pricing models, such as real estate-based pricing model, based on a fixed interest rate model, the pricing model based on life expectancy. As the business related to such factors as interest rates and life expectancy, thus the development of a reverse mortgage, actuarial pricing model, but more studies are based on fixed interest rates to do the. The main results of this study is under stochastic interest rate reverse mortgages were priced, and the situation on many lives were discussed. Since the rise of reverse mortgage is not long, and carried out in China is not completely open to, this trip to do an academic discussion of reverse mortgages in a series of pricing theory.