| Autor: |
Rodda, David T., Lam, Ken, Youn, Andrew |
| Předmět: |
|
| Zdroj: |
Real Estate Economics; Winter2004, Vol. 32 Issue 4, p589-617, 29p, 11 Charts, 4 Graphs |
| Abstrakt: |
Federal Housing Administration-insured reverse mortgages, known as Home Equity Conversion Mortgages (HECMs), did not originally have a provision for low-cost refinancing. If a borrower's house value increased faster than expected, the borrower could not tap that additional equity without terminating the first loan and originating a new HECM loan with full closing costs. We test several low-cost refinancing options using a stochastic simulation model that allows interest rates and house prices to vary in historically accurate patterns. Low-cost refinancing decreases the net value of the fund by 54% to $98.5 million, but it remains positive in 80% of the trials. [ABSTRACT FROM AUTHOR] |
| Databáze: |
Complementary Index |
| Externí odkaz: |
|
