System and method for providing a custom hedged adjustable rate mortgage

• US 20070192226A1
• Filed: 09/20/2006
• Published: 08/16/2007
• Est. Priority Date: 09/20/2005
• Status: Active Grant

• Current Assignee: Charles Uhlmann, Paul Brewer
• Original Assignee: Charles Uhlmann, Paul Brewer
• Inventors: Uhlmann, Charles, Brewer, Paul
• Granted Patent: US 7,720,752 B2
• Time in Patent Office: Days
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Methods, media, and systems for providing a custom hedged adjustable rate mortgage are provided. These methods, media, and systems provide hedges and mortgages that may be used in conjunction with the retail mortgage sector. To facilitate these hedges and mortgages, computer systems are provided that allow a user to calculate fees, interest rates, and payments for these products based upon various factors selected by a user. The methods, media, and systems also provide a savings calculator that enables a user to determine what savings will be made be purchasing a hedge and/or mortgage under one or more scenarios.

Claims

1. A method for determining costs associated with a residential mortgage including a hedge, comprising:

receiving from a user variables defining the residential mortgage and the hedge to be applied to the residential mortgage;

calculating an initial rate period rate that is associated with the residential mortgage;

displaying to the user the initial rate period rate; and

for each of a plurality of durations during which the hedge may be applied to the mortgage;

calculating a hedge period rate that applies for the duration during which the hedge may be applied to the mortgage; and

displaying the hedge period rate.

2. The method of claim 1, wherein one of the variables in a loan amount.

3. The method of claim 1, wherein one of the variables is a loan start rate.

4. The method of claim 1, wherein one of the variables is a fixed rate period.

5. The method of claim 1, wherein one of the variables is an unprotected rate.

6. The method of claim 1, wherein one of the variables is a protected rate.

7. The method of claim 1, further comprising receiving an indicator indicating whether the hedge is full-amortizing.

8. The method of claim 1, further comprising calculating an up-front fee associated with the hedge, and displaying to the user the up-front fee.

9. The method of claim 8, further comprising calculating the up-front fee for a plurality of different types of hedges.

10. The method of claim 1, wherein the initial rate period rate and the hedge period rate are displayed as amounts of money paid per a given time period.

11. A computer-readable medium containing computer-executable instructions that, when executed by a processor, cause the processor to perform a method for determining costs associated with a residential mortgage including a hedge, comprising:

receiving from a user variables defining the residential mortgage and the hedge to be applied to the residential mortgage;

calculating an initial rate period rate that is associated with the residential mortgage;

displaying to the user the initial rate period rate; and

for each of a plurality of durations during which the hedge may be applied to the mortgage;

calculating a hedge period rate that applies for the duration during which the hedge may be applied to the mortgage; and

displaying the hedge period rate.

12. The computer-readable medium of claim 11, wherein one of the variables in a loan amount.

13. The computer-readable medium of claim 11, wherein one of the variables is a loan start rate.

14. The computer-readable medium of claim 11, wherein one of the variables is a fixed rate period.

15. The computer-readable medium of claim 11, wherein one of the variables is an unprotected rate.

16. The computer-readable medium of claim 11, wherein one of the variables is a protected rate.

17. The computer-readable medium of claim 11, further comprising receiving an indicator indicating whether the hedge is full-amortizing.

18. The computer-readable medium of claim 11, further comprising calculating an up-front fee associated with the hedge, and displaying to the user the up-front fee.

19. The computer-readable medium of claim 18, further comprising calculating the up-front fee for a plurality of different types of hedges.

20. The computer-readable medium of claim 11, wherein the initial rate period rate and the hedge period rate are displayed as amounts of money paid per a given time period.

21. A system for determining costs associated with a residential mortgage including a hedge, comprising:

a processor that;

receives from a user variables defining the residential mortgage and the hedge to be applied to the residential mortgage;

calculates an initial rate period rate that is associated with the residential mortgage; and

for each of a plurality of durations during which the hedge may be applied to the mortgage, calculates a hedge period rate that applies for the duration during which the hedge may be applied to the mortgage; and

a display that;

displays to the user the initial rate period rate; and

for each of a plurality of durations during which the hedge may be applied to the mortgage, displays the hedge period rate.