Mortage financing system

• US 20050246267A1
• Filed: 06/18/2003
• Published: 11/03/2005
• Est. Priority Date: 06/19/2002
• Status: Abandoned Application

• Current Assignee: Evelyn Nichols
• Original Assignee: Evelyn Nichols
• Inventors: Nichols, Evelyn
• Application Number:
  US10/519,179
• Publication Number:
  US 20050246267A1
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

The present invention is a method for providing mortgage financing to a borrower while additionally creating the opportunity for the borrower to invest in their long and short-term financial security. In real estate purchase, a mortgage is extended for greater than the real estate purchase price. The surplus amount is applied against at least one investment vehicle, so that after the periodic payments are completed, the borrower has equity in real estate and an interest in at least one investment vehicle. The investment vehicle provides security for the mortgage.

Claims

1. A method for providing mortgage financing to a borrower comprising:

a. identifying real estate;

b. applying for mortgage loan;

c. having said mortgage loan application approved;

d. receiving a mortgage loan principal amount to cover cost of said real estate and at least one investment vehicle;

e. forwarding funds equivalent to said cost of said real estate from said mortgage loan principal amount to said seller;

f. purchasing at least one investment vehicle with funds from said mortgage loan principal amount;

g. providing mortgage payments for a loan term; and

h. receiving full ownership interest in said at least one investment vehicle and said real estate.

2. The method of claim 1 further comprising the step of holding said at least one investment vehicle as collateral against said mortgage loan prior to step (h).

3. The method of claim 2 wherein said collateral is held by a lender.

4. The method of claim 3 wherein said lender is a system practitioner.

5. The method of claim 2 further comprising the step of making periodic payments against said mortgage loan.

6. The method of claim 5 wherein when unable to make said periodic payments, funds are applied from said at least one investment vehicle to said mortgage loan equal to said periodic payment.

7. A method of implementing a loan repayment plan, which comprises:

a. determining a principal loan amount to be provided to a borrower;

b. determining an additional loan amount to be provided to a borrower;

c. determining a repayment term;

d. providing said principal amount;

e. providing said additional loan amount to an investment entity;

f. purchasing at least one investment vehicle with funds from said additional loan amount;

g. providing loan repayment increments during said repayment term; and

h. receiving an interest in said at least one investment.

8. The method of claim 7 wherein said loan is a real estate mortgage.

9. The method of claim 8 wherein a lender supplies said principal loan amount and said additional loan amount.

10. The method of claim 9 wherein said lender takes an interest in said at least one investment vehicle as collateral against said real estate mortgage.

11. The method of claim 9 comprising the step of a system practitioner collecting application criteria from a borrower prior to step (c).

12. The method of claim 11 further comprising the step of said system practitioner providing said principal loan and said additional loan amount to an escrow entity prior to step (f).

13. The method of claim 12 further comprising the step of said escrow entity providing said loan amount to a seller and said additional loan amount to said investment entity.

14. The method of claim 13 wherein said investment entity is said system practitioner.

15. The method of claim 13 wherein said investment entity is a financial institution not related to said system practitioner.

16. The method of claim 7 wherein said investment vehicle is one of:

an annuity;

a single premium immediate annuity;

a universal life policy;

a certificate of deposit;

a guaranteed interest contract;

a mutual fund;

a savings account;

a zero coupon bond;

a municipal bond;

a variable life policy;

a whole life policy;

a financial security investment.

17. The method of claim 7 wherein said additional loan amount is substantially 20 percent of said principal loan amount.

18. A method of mortgaging real estate which provides for a collateral investment in an investment vehicle comprised substantially of the steps of having a loan amount approved for a principal amount and an investment amount;

providing said principal amount to a seller of said real estate;

applying said investment amount to purchase at least one investment vehicle;

making periodic payments towards said loan amount, thereby concurrently accumulating equity in said real estate and an interest in said at least one investment vehicle.

19. The method of claim 18 further comprising a first and second investment vehicle, wherein said first investment vehicle is an annuity, and said second investment vehicle is an insurance policy.

20. The method of claim 19 further comprising the steps of purchasing said annuity, followed by applying said insurance policy, thereby providing security for said loan amount.