#3094. Determining an Optimal Principal Limit Factor for Reverse Mortgages under Economics-Based Models

November 2026publication date
Proposal available till 30-05-2025
4 total number of authors per manuscript3510 $

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Journal’s subject area:
Finance;
Economics and Econometrics;
Accounting;
Places in the authors’ list:
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Contract №3094.1 Contract №3094.2 Contract №3094.3 Contract №3094.4
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2 place - free (for sale)
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4 place - free (for sale)

Abstract:
The article developed a model for calculating the optimal PLF values for both uninsured and insured RMs based on two models: break-even and maximum profit from the lenders point of view. The results show that all of our PLFs are higher than those of Szymanoski (1994) with the same basic parameters.
Keywords:
Collateral risk; Crossover risk; Interest rate risk; Longevity risk; Principal limit factor; Reverse mortgage

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