Edema at 19:47, 22 January 2023

2023-01-22T19:47:08Z

Edema: /* Mortgage Risk Assessment Model */ new section

2022-12-29T13:10:00Z

‎Mortgage Risk Assessment Model: new section

New page

== Mortgage Risk Assessment Model ==

'''Simulation'''
Mortgages usually have a repayment period of between 25 to 35 years. This model is to assess how different conditions affect the ability of a mortgagee to payback the mortgage. This simulation will also simulate which conditions can lead to a default, early or late repayment or inability to repay. IN addition, it will simulate the development of the mortgage interest rate.

'''Goal'''
The goal of this simulation is to simulate how long it can take a borrower to fully repay his mortgage taking into account several conditions. It will also provide information on the volatility of the lender

'''Practical relevance'''
This model can be used by banks and mortgage companies for assessing potential mortgages borrowers to determine the risks and how much should be given out.

Method The simulation would be done using '''Vensim'''

'''Model Parameters'''
-Some parameters will include Borrower Age, Income, Expenses, Savings, Repayment Period, Economy, Savings, Health Conditions, Family Size, Mortgage Interest Rate.
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Talk:Course materials - Revision history

Edema at 19:47, 22 January 2023

Edema: /* Mortgage Risk Assessment Model */ new section