Study on Dynamic Interrelationship between the COFIX Interest Rate and the Housing Mortgage Loan Interest Rate

2017 ◽  
Vol 30 (12) ◽  
pp. 2127-2145
Author(s):  
Wooseok Kim ◽  
◽  
Gyu-Sik Han ◽  
Keyword(s):  
Interest Rate ◽  
Mortgage Loan ◽  
Housing Mortgage Loan

scholarly journals Research on Interest Rate Risk of Housing Mortgage Loan Based on Computer Simulation

2021 ◽  
Vol 2021 ◽  
pp. 1-6
Author(s):  
Enlin Tang
Keyword(s):  
Computer Simulation ◽  
Interest Rate ◽  
Commercial Banks ◽  
Simulation Method ◽  
Interest Rate Risk ◽  
Mortgage Loan ◽  
Mortgage Loans ◽  
Rate Risk ◽  
The Interest Rate ◽  
Housing Mortgage Loan

In recent years, with the rapid increase of the business volume of housing mortgage loans of commercial banks, the risk of prepayment is increasingly exposed. Prepayment will have a great impact on the duration and convexity of housing mortgage loans of commercial banks and then bring difficulties to the asset liability management of banks. Therefore, empirical research on the changes of duration and convexity of housing mortgage loans caused by prepayment when the market interest rate changes is of great significance for commercial banks to manage interest rate risk exposure. Based on the analysis of the option characteristics of prepayable housing mortgage loan, the CIR model with GARCH(1, 1) is selected to describe the interest rate change path, and the computer simulation method is used to calculate OAS and then calculate the effective duration and effective convexity of housing mortgage loan under different prepayment rates, so as to understand the interest rate risk of housing mortgage loan in the presence of embedded option.

scholarly journals Analysis of Housing Market Dynamics Considering the Structural Characteristics of Mortgage Interest

2021 ◽  
Vol 13 (19) ◽  
pp. 10523
Author(s):  
Insoo Baek ◽  
Sanghyo Lee ◽  
Joosung Lee ◽  
Jaejun Kim
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Housing Market ◽  
Structural Characteristics ◽  
Housing Demand ◽  
Market Mechanism ◽  
Policy Implications ◽  
Mortgage Loan ◽  
Market Mechanisms ◽  
The Government

Mortgage loan interest rates consists of base interest and spread. In general, the base interest is adjusted by the government for the sustainability of the housing market. On the other hand, spread is determined by market mechanisms. Accordingly, the change pattern of base interest and spread may appear differently depending on the market situation. In the end, the effect of the government’s market intervention through interest rate policy may be different than expected. In this respect, the purpose of this paper is to analyze the effects of base interest and spread of the mortgage loan interest rate on the housing market and to derive important policy implications for the sustainability of the housing market. As a result of this study, the ineffectiveness of the government’s interest rate policies on the stability of the housing market was confirmed. The market mechanisms had more significant effects on the sustainability of the housing market than artificial political intervention. Further, housing supply policies based on the market mechanism could be more effective than housing demand policies based on interest-rate adjustments.

Risk evaluation of mortgage-loan portfolios in a low interest rate environment

2014 ◽  
Vol 16 (5) ◽  
pp. 3-37 ◽  
Author(s):  
Masaaki Kijima ◽  
Youichi Suzuki ◽  
Yasuhiro Tamba
Keyword(s):  
Interest Rate ◽  
Risk Evaluation ◽  
Mortgage Loan ◽  
Loan Portfolios ◽  
Rate Environment

scholarly journals STUDI KOMPERATIF SISTEM GADAI KONVENSIONAL DENGAN GADAI SYARIAH DI INDONESIA

FIAT JUSTISIA ◽  
2016 ◽  
Vol 1 (2) ◽  
Author(s):  
Aprilianti Aprilianti
Keyword(s):  
Interest Rate ◽  
Islamic Law ◽  
Mortgage Loan

Pawn broking services in Indonesia, in addition to impose a conventional mortgage system set out in PP 103 2000 On Pawnshop, also impose sharia pawning system based on the provisions of Islamic law which is based on the Qur'an. In the conventional mortgage loan bears an interest rate that is accumulative and double for its services, while at the syariah pawn does not bear interest. Customer charged deposit money services, maintenance, preservation and biay assessment specified in the initial agreement. Keywords: Conventional Pawn, Pawn sharia

Conditional optimization of mortgage loan parameters

2021 ◽  
Vol 20 (3) ◽  
pp. 577-588
Author(s):  
Aleksei Yu. CHUDNOVETS ◽  
Sodnom B. BAINOV
Keyword(s):  
Interest Rate ◽  
Mortgage Loan ◽  
Optimal Time ◽  
Krasnoyarsk Krai ◽  
Construction Enterprises ◽  
Final Optimization ◽  
The Interest Rate ◽  
Two Parameters ◽  
Conditional Optimization ◽  
Loan Amount

Subject. In the article, we calculate the period of a borrowing, in which the interest burden and monthly payments are minimal. Objectives. The aim is to create an algorithm to optimize the term of the mortgage loan, taking into account the amount of debt and interest rate of the loan. Methods. The study employs methods to analyze the formula of annuity payments of a mortgage loan, and to model the final optimization algorithm. Results. We developed an algorithm, to determine the optimal term of the loan, using the certain loan amount and interest rate. The study considers the case for banks, operating in Krasnoyarsk. Conclusions. The paper considers two parameters of a mortgage loan, i.e. the interest burden and the monthly payment, which is calculated, according to the annuity formula. Both parameters depend on the loan amount, the interest rate, and the period of the loan. However, the interest rate is set by the bank, so the only parameter that the borrower can change is the period of payment. By changing the term to maturity, it is possible to have a loan with minimum payments and interest burden. For the purpose of optimization, we consider both parameters simultaneously. Taking into account their versatile nature, we consider the optimal time, when payments and interest burden are minimized. The paper also reviews the case of optimization of credit parameters for construction enterprises of the Krasnoyarsk Krai, in various banks.

scholarly journals The Effects of Macroeconomic Factors on Bank Loan Interest Rates in Turkey Authors

2020 ◽  
Vol 7 (2) ◽  
pp. 70-86
Author(s):  
Yıldız Münevvere
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Interest Rates ◽  
Money Supply ◽  
Gold Price ◽  
Mortgage Loan ◽  
Bank Loan ◽  
Macroeconomic Factors ◽  
Causality Relationship ◽  
Loan Interest Rates

The purpose of the study to reveal how interest rates on loans offered to consumers by banks in Turkey are affected by macroeconomic factors. For this purpose, the personal loan interest rate is considered as the consumer loan interest rate, mortgage loan interest rate and vehicle loan interest rate. Macroeconomic factors, inflation, gold, exchange rate and money supply are included in the analysis. Three models have been established using monthly data for the period January 2009-June 2020. Firstly, cointegration test was applied to the models and it was determined that there is at least one cointegration relationship in each model. Long-term estimation results for the models are obtained by using the FMOLS method. In general, it was observed that the increase in the exchange rate tended to increase the bank loan interest rates, while the increase in the money supply lowered the bank loan interest rates. As a result of the causality analysis, bidirectional causality relationship from consumer loan interest rate to money supply and inflation, unidirectional causality from interest rate to gold price, unidirectional causality relationship from exchange rate to interest rate was determined. Unidirectional causality relationship from mortgage loan interest rate to money supply, unidirectional causality from exchange rate to interest rate was found. While it was determined that there is a bidirectional causality relationship between vehicle loan interest rate and money supply, gold price and inflation. It is expected that these results may guide banks and policymakers to determine interest rate policies.

Mathematical Modelling Analysis of Credit Risk in Home Loan

2012 ◽  
Vol 433-440 ◽  
pp. 2342-2348
Author(s):  
Po Sheng Ko ◽  
Cheng Chung Wu ◽  
Chung Feng Chang
Keyword(s):  
Interest Rate ◽  
Influence Factor ◽  
House Price ◽  
Mortgage Loan ◽  
The Real ◽  
Market Rate ◽  
Modelling Analysis ◽  
Rate Period ◽  
The Interest Rate ◽  
Loan Amount

Our country generally has voluntarily buys custom of the room, but house price actually non- each individual people all can bear its amount, therefore all relies on the mortgage loan which the financial organ provides. However the financial organ after the loaning out fund, will be able to face the loan person in also the funds behavior irregularity, will break a contract the situation influence to be biggest, further inquired into its influence factor has its necessity. Breaks a contract influence factor the situation to be possible to differentiate for the interest rate with the non- interest rate two aspects, tended to by the recent years market rate undulation relaxes the tendency to look, analysis the non- interest rate influence factor appeared is important. This research directly embarks from the loan characteristic, the analysis contains the loan amount, the loan interest rate, period of payments and so on three variables to break a contract influence the situation, and returns (Logistic Regression , LR) the model makes the real diagnosis analysis, the real diagnosis result also demonstrated the non- interest rate influence factor reveals the influence to the loan person irregular also funds behavior existence.

Dampak Kebijakan Moneter Pada Output Di Negara-Negara ASEAN Tahun 1980-2014

2017 ◽  
Vol 4 (1) ◽  
pp. 58-70
Author(s):  
Nur Widiastuti
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Least Square ◽  
Fixed Effects Model ◽  
State Data ◽  
Ordinary Least Square ◽  
The Impact

The Impact of monetary Policy on Ouput is an ambiguous. The results of previous empirical studies indicate that the impact can be a positive or negative relationship. The purpose of this study is to investigate the impact of monetary policy on Output more detail. The variables to estimatate monetery poicy are used state and board interest rate andrate. This research is conducted by Ordinary Least Square or Instrumental Variabel, method for 5 countries ASEAN. The state data are estimated for the period of 1980 – 2014. Based on the results, it can be concluded that the impact of monetary policy on Output shown are varied.Keyword: Monetary Policy, Output, Panel Data, Fixed Effects Model

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