| Summary: | 碩士 === 明新科技大學 === 管理研究所碩士班 === 103 === Due to the increasing competition in the financial market, the gap between interest rates on deposits and on loans has decreased to tiny points. In order to attracting customers, the situation is even worse for mortgage loan market. The purpose of the study is to understand the pattern of prepayment rates to reduce the uncertainty of cash flows and interest revenue in the future. This study examines mortgage loans from 152 domestic branches of a big financial holding company and calculates prepayment rates for each branch and each month in 4-year sample period from 2011 to 2014. Tobit regression model is used to explore the factors that influence the prepayment rates.
The results show that the mortgage prepayment is faster in the regions of northern and of Tao Zhumiao areas. The subsample divided by county/city show that the factors of loan interest rate, house trading prices, economic growth rate, savings rate and national disposable income have significant impacts on prepayment rates, but the returns on Taiwan stock market have no significant explanation power for prepayment rates.
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