Mathematical Modelling Analysis of Credit Risk in Home Loan

Abstract

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.

Mathematical Modeling of Real Estate Financial Analysis of Mortgage Loan

“…The rate of inflation is of particular importance to investors and lenders making or purchasing loans made at fixed rates of interest over long periods of time. The uncertainty about what interest rate to change, when a loan is made can be referred to as interest rate risk [18]. For example, anticipated inflation may have been 6 percent at the time our Tk.100000 loan was made, but if actual inflation turns out to be 8 percent, this means the interest rate that should have been changed.…”