The value of the variable tenor mortgage feature in Hong Kong
Publication in refereed journal

替代計量分析
.

其它資訊
摘要A significant portion of residential mortgages in Hong Kong is adjustable-rate mortgages with variable maturities. A key feature of this type of mortgage is that the maturity and the principal payment adjust to ensure that the monthly installment does not fluctuate when interest rates change. Hence, these mortgages are also known as variable tenor (VRT) mortgages. In contrast to the monthly payment volatility of their fixed maturity variable payment (VRP) counterparts, VRT mortgages impose interest rate risk in the form of variable mortgage maturity. We investigate the value of the VRT feature by analyzing the mortgage choice problem in Hong Kong, and find that it can be used as a screening device to separate borrowers with slower propensities to prepay from those who are likely to prepay their mortgages faster. © 2003 Elsevier Science B.V. All rights reserved.
著者Chow Y.-F., Liu M.
期刊名稱Pacific-Basin Finance Journal
出版年份2003
月份1
日期1
卷號11
期次1
出版社Elsevier BV
出版地Netherlands
頁次61 - 80
國際標準期刊號0927-538X
電子國際標準期刊號1879-0585
語言英式英語
關鍵詞Adjustable-rate mortgages, Mortgage choice

上次更新時間 2020-21-10 於 01:19