System and method for paying down debt using an equity loan revolving line of credit
First Claim
1. In a mortgage system in which a loan account is secured to a property, the loan account comprising principal and interest, a method of paying the loan principal, such that equity in the property is increased, the method comprising the acts of:
- receiving a first user payment into a loan account;
applying at least a first portion of the first user payment to the loan principal;
receiving a payment for at least amortized monthly interest on the loan account from a credit account, wherein the credit account comprises a credit limit and a grace period;
incurring a further debt on the loan account to pay off the balance of the credit account, the further debt causing the amount owed on the loan account to increase;
receiving a second user payment into the loan account;
applying at least a first portion of the second user payment to the further debt incurred on the loan; and
applying a second different portion of the second user payment to the loan principal.
1 Assignment
0 Petitions
Accused Products
Abstract
A loan system program comprises a loan account having a loan principal on a purchased item, and a secondary account used to pay the amortized interest on the loan principal. A user deposits, such as through automatic deposit, user payments directly into the loan account, thus paying down the loan principal. The user then uses the secondary account for personal expenses that would otherwise be met by the deposited user payments. At the end of the month or grace period, the user pays off the monthly interest on the loan account with the secondary account. The lender than raises the loan balance of the loan account to cover the secondary account balance. At least a portion of the next user deposit to the loan account covers the raise loan balance, and another portion is used to pay down the loan principal.
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Citations
26 Claims
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1. In a mortgage system in which a loan account is secured to a property, the loan account comprising principal and interest, a method of paying the loan principal, such that equity in the property is increased, the method comprising the acts of:
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receiving a first user payment into a loan account;
applying at least a first portion of the first user payment to the loan principal;
receiving a payment for at least amortized monthly interest on the loan account from a credit account, wherein the credit account comprises a credit limit and a grace period;
incurring a further debt on the loan account to pay off the balance of the credit account, the further debt causing the amount owed on the loan account to increase;
receiving a second user payment into the loan account;
applying at least a first portion of the second user payment to the further debt incurred on the loan; and
applying a second different portion of the second user payment to the loan principal. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)
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13. In a mortgage system in which a loan account is secured to a property, the loan account comprising principal and interest, a method of managing a loan program for a user, such that equity in the property is increased, the method comprising the acts of:
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providing a user with a revolving loan account, the loan account having a loan principal and a monthly loan interest;
providing a secondary account having an access limit based at least on a monthly user budget, and the monthly loan interest;
automatically paying the monthly loan interest with the secondary account; and
automatically paying down the loan principal and the secondary account at least in part with one or more user payments, such that the principal is paid down each time at least one of the one or more user'"'"'s payments are received. - View Dependent Claims (14, 15, 16, 17, 18, 19, 20, 21, 22, 23)
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24. A computer program product for use in a mortgage system in which a loan account is secured to a property, the loan account comprising principal and interest, the computer program product implementing a method of paying the loan principal, such that equity in the property is increased, the computer program product method comprising one or more computer-readable media having computer-executable instructions stored thereon that, when executed at a processor, cause the mortgage system to perform the following:
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receive a first user payment into a loan account, apply at least a first portion of the first user payment to the loan principal;
receive a payment for at least amortized monthly interest on the loan account from a credit account, wherein the credit account comprises a credit limit and a grace period;
incur a further debt on the loan account to pay off the balance of the credit account, the further debt causing the amount owed on the loan account to increase;
receive a second user payment into the loan account;
apply at least a first portion of the second user payment to the further debt incurred on the loan; and
apply a second different portion of the second user payment to the loan principal. - View Dependent Claims (25, 26)
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Specification