Mortgage option method

• US 20050114259A1
• Filed: 11/21/2003
• Published: 05/26/2005
• Est. Priority Date: 11/21/2003
• Status: Abandoned Application

• Current Assignee: Joe W. Almeida
• Original Assignee: Joe W. Almeida
• Inventors: Almeida, Joe W.
• Application Number:
  US10/717,454
• Publication Number:
  US 20050114259A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

The mortgage option method is a way that applicants wishing to take advantage of low mortgage interest rates, but who, for whatever reason, are unable or unwilling to initiate the application process at the present time, can obtain a right to the low mortgage rate at some time in the future when mortgage rates have increased. Designed for either the residential or commercial real estate market, method allows customers to lock-in a mortgage at the then current rate for up to four years by paying a nonrefundable up-front premium. The mortgage option may be exercised at any time during the option term, at a rate lower than the prevailing rates.

Claims

1. A method for marketing a low interest rate mortgage, comprising the steps of:

offering options for mortgages at a fixed low interest rate for a premium dependent upon a desired principal amount and a desired option term;

receiving a mortgage option application from a customer for a customer selected principal amount and a customer selected option term;

determining the customer premium for the customer selected principal amount and the customer selected option term;

extending an option to the customer for the customer selected principal amount and the customer selected option term for the customer premium;

receiving payment of the customer premium; and

extending a mortgage at the fixed low interest rate when the customer exercises the option within the customer option term.

2. The method for marketing according to claim 1, further comprising the step of pre-qualifying the customer before the customer selected option term begins.

3. The method for marketing according to claim 1, further comprising the step of terminating said option when the customer fails to exercise the option before the customer selected option term ends.

4. The method for marketing according to claim 1, wherein said option is for a residential property.

5. The method for marketing according to claim 1, wherein said option is for a commercial property.

6. The method for marketing according to claim 1, wherein said step of determining the customer premium further comprises the step of setting a premium based upon a percentage of the customer desired principal amount.

7. The method for marketing according to claim 1, wherein said offering step further comprises the step of publishing a table of the premiums for the fixed low interest rate, the desired principal amounts and the desired option terms.