Research On Influence Factors And Pricing Model Of "Housing Endowment"

Along with the aging problem, pension problems become a social problem. There are two problems: the pension gap and the pension rate drop. Reverse mortgage loan is introduced to solve the problem and it originated in Europe. The elderly get owner-occupied housing mortgages, while the borrowers retain the right to the use of the building. So that the elderly can get a sum of money to maintain their daily lives.A product can be rolled out or not, the key is the rationality of its pricing. According to the foreign experience, there are two main types of pricing—factor payments and insurance actuarial science. But the two methods need to be calculated according to the historical data. The research is still in the primary stage of this product.so the two methods is not suitable in our country. And the research stays in the static, unilateral research, lack of overall discussion.Based on the situations, this paper chose the risk neutral pricing model. The author introduced the main factors influencing for the pricing model and respectively researched the interest rates, mortgage value and the life expectancy. The interest rate mainly affects the accumulative amount of borrowing after the contract. The paper Based on 5-year benchmark lending rate as sample, analyzes and simulates the interest rate fluctuation path. Mortgage values mainly affect the profit and loss situation for lenders. This paper uses the second-hand house price index to simulate the future housing price changes. The life expectancy mainly affect the contract time. This article uses the dynamic model on the basis of existing data to calculate the future life expectancy value.And compared with the previous static model,the present modol is a great improvement. Different from the previous pricing model, this paper modifies the pricing model from the borrower’s angle. Accumulative total does not include the beginning balance in the borrowing costs, and initial charge adopt the mode of payment by installment. Finally, the life annuity for the above model made the concrete calculation and sensitivity analysis.And i get the following results: the loan amount available each year, as the growth of the age increased; Borrowing and mortgage values were positively related, while the initial fee,housing allowance for depreciation and risk-free interest rate showed a negative correlation relationship; results of the pricing, the sensitive degree of each factor from high to low in turn is: mortgage values, housing allowance for depreciation, initial fee, risk-free interest rate. Above all the pricing results can be explained, and the calculated value are in the reasonable range, and changing trend in line with the previous forecasts. These further verify its rationality.