Pricing of Reverse Mortgages
Pricing of Reverse Mortgages
Period:
01.06. – 30.12.2011
Reverse mortgages are home equity release products which enable elderly house owners to receive a cash flow from a bank without having to leave their property. Interest and debt payments are deferred and are paid out of the property value upon expiration of the contract (at the close of life). Reverse mortgages originated in the U.S. but are increasingly found in Europe. Purpose of this project is the analysis of pricing of reverse mortgages.
