METHOD OF INVESTING REAL ESTATE DOWN PAYMENTS

• US 20050131713A1
• Filed: 12/12/2003
• Published: 06/16/2005
• Est. Priority Date: 12/12/2003
• Status: Abandoned Application

• Current Assignee: Hammond W. Scott
• Original Assignee: Hammond W. Scott
• Inventors: Hammond, W. Scott
• Application Number:
  US10/707,431
• Publication Number:
  US 20050131713A1
• Time in Patent Office: Days
• US Class Current: 705/316
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 50/167 Closing

Abstract

The method in which in a real estate transaction with a real estate buyer and a lender, the initial down payment made by the real estate buyer is used to generate earnings. Typically, this is provided by having the lender generate earnings from the down payment received from the buyer through compounding balloon loans. The down payment from the buyer is used as security against the mortgage on behalf of the lender. Using the present invention, both the lender and the buyer have the potential of making additional earnings by using the cash down payment provided by the buyer as a source for generating earnings for the benefit of all the parties.

Claims

1. A method useful in real estate mortgages in which the initial cash payment made by a real estate buyer termed the down payment is used throughout the term of the mortgage to generate earnings.

2. The method as in claim 1 in which the down payment generates earnings through compounding balloon loans.

3. The method as in claim 1 in which the buyer/borrower'"'"'s down payment is used as security against the mortgage on behalf of the lender.

4. The method as in claim 1 in which the lender provides a 100% mortgage wherein the mortgage payments return the principal.

5. The method as in claim 1 in which the down payment of the buyer/borrower is used as equity on behalf of the buyer.

6. The method as in claim 1 in which the buyer/borrower received the equivalent of an 80% mortgage plus interest with a 20% down payment.

7. The method of claim 1 in which the down payment is considered prepaid interest on the mortgage.

8. The method of claim 1 in which the down payment earnings are used to increase lender profits while lowering borrower interest rates and/or monthly payment.

9. The method as in claim 1 in which the mortgage is assumable or transferable.

10. The method as in claim 1 in which a 4.9% interest, ten year mortgage is derived.

11. The method as in claim 1 in which prepayment penalties are eliminated.

12. The method as in claim 1 in which the mortgage interest rate is fixed through the term of the loan.

13. The method of claim 1 in which the mortgage is insured through a mortgage insurance account.