From Next February, Monthly Payments from JooTaekYeonKeum Will Decrease by 1.5% on Average
- Date 2014-12-22
- Views 659
From Next February, Monthly Payments from JooTaekYeonKeum Will Decrease by 1.5% on Average
- Existing mortgagors and those who have completed their application by January 31, 2015 will receive the current monthly rate-
Monthly payments received from JooTaekYeonKeum to be reduced from February 2015 as a result of the
adjustment of key variants of the reverse mortgage
- The prospect for housing price growth has been lowered and the interest rate has been adjusted downward
in response to the low interest rate environment -
From February 2015, new JooTaekYeonKeum (reverse mortgage) subscribers will receive less in monthly
mortgage payments. However, existing subscribers and those who have completed their application by the
end of next January will be able to receive the current monthly rate.
After gathering opinions on proposed changes to key variants, on the basis of which the monthly payments
from its reverse mortgage products are calculated, Korea Housing Finance Corporation (HF, President Kim
Jae-Chun) adjusted the key variants through the resolution of the Housing Finance Steering Committee on the
19th. The changes will be implemented beginning next February.
According to the reassessment of the key variants by an external agency commissioned by HF, ▲ the annual
house price growth rate has been adjusted downward from the current 2.9% to 2.7% and ▲ the current 2012
life table has been replaced by the 2013 life table, lowering the monthly stream of income from the reverse
mortgage. However, the interest rate forecast has been adjusted downward, resulting in a slight increase in the
monthly payments.
With these adjustments reflected in the monthly payment calculation, the monthly payments from a fixed-rate
reverse mortgage on an ordinary home will be cut by 1.5% on average.
The current monthly rate applicable for existing subscribers and those who have completed their application by
the end of next January
The change will apply to new reverse mortgage applications filed from next February. However, existing
subscribers and those who have completed their application by the end of next January will receive the monthly
payment rate determined at the time of their subscription.
