Influence Factors on the Options between Purchase and Refinance of Us Reverse Mortgages

• Main Authors: Shu-Ting Yu, 游淑亭
• Other Authors: Jui-Chen Chang
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/92079944490681555717

碩士 === 南華大學 === 財務金融學系財務管理碩士班 === 104 === 　　Due to the decline in fertility, the elder retirees begin to plan their needs for future living. The Ministry of Interior has proposed a "Home Equity Conversion Mortgage" program for the elders over 65 years old in 2012. This program evaluates their real estate reverse mortgage credits and this valuation of real estate in turn exchanges to the monthly payment for retirees, but the effect is limited. On the other hand, in United States, the value of real estate mortgage conversion program began in 1989. Elders of 62-year-old could apply mortgages from bank with the property-under-their names; this program was highly welcomed in US. 　　This study analyzed the Home Equity Conversion Mortgage data during the period from January 2014 to December 2014 and covered 50 states which were published by the US Reverse Residential Mortgage Development Department using the Logistic regression model. From the variables of the "Initial Principal Limit", "Maximum Claim Amount", and "Interest Rate" of reverse mortgages to investigate the factors that affect the borrower's option on the type of purchase and refinance. The empirical results showed that these three independent variables can effectively predict or explain the type of purchase or refinance with significance. From the aspects of each month and each district, at least one of the three variables can explain and predict the type of purchase and refinance.