A Reverse Mortgage (RM) provides an attractive way to increase retirement incomes and to face the needs of elderly people. The RM market is exposed to longevity risk, as retirees’ life expectancy increases, to interest rate risk, especially in the low-rate post-crisis period, and to property market risk, in the last stage of the current business cycle. We evaluate the lump sum of the RM depending on the age of the homeowner. Numerical results are shown, and policy suggestions are offered.
Reverse Mortgage: some remarks on the interplay between contract benefit and borrower’s age / Di Lorenzo, E.; Piscopo, G.; Sibillo, M.. - (2023). (Intervento presentato al convegno International Conference on Scientific Computing, Modeling and Simulation (ICSCMS-23) tenutosi a London, UK nel 29th November 2023).
Reverse Mortgage: some remarks on the interplay between contract benefit and borrower’s age
E. Di Lorenzo;G. Piscopo;M. Sibillo
2023
Abstract
A Reverse Mortgage (RM) provides an attractive way to increase retirement incomes and to face the needs of elderly people. The RM market is exposed to longevity risk, as retirees’ life expectancy increases, to interest rate risk, especially in the low-rate post-crisis period, and to property market risk, in the last stage of the current business cycle. We evaluate the lump sum of the RM depending on the age of the homeowner. Numerical results are shown, and policy suggestions are offered.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
