SYSTEM AND METHOD FOR AUTOMATICALLY INVESTING A PORTION OF INTEREST CHARGED IN A MORTGAGE INSTALLMENT PAYMENT

• US 20080172345A1
• Filed: 01/12/2007
• Published: 07/17/2008
• Est. Priority Date: 01/12/2007
• Status: Active Grant

• Current Assignee: Bryan Francis Blair
• Original Assignee: Bryan Francis Blair
• Inventors: Blair, Bryan Francis
• Granted Patent: US 8,126,796 B2
• Time in Patent Office: Days
• US Class Current: 705/36R
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• 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

A method and a system are provided to allocate a borrower'"'"'s monthly home loan repayments to a loan provider to an interest payment account and an equity accrual account; and, to further allocate to a retirement or education account a monthly amount of savings that is correlated to that portion of each monthly home loan repayment comprising interest on the loan. The monthly amount of savings allocated to the retirement or education account is computed by multiplying that portion of each monthly home loan repayment comprising interest on the loan by a savings rate that is a function of an economic benchmark.

Claims

1. A method employed by a loan provider of home loans secured by a mortgage, for using a computer having a memory with associated data input/output and processing means, to allocate and credit a borrower'"'"'s monthly home loan repayments to the loan provider to an interest repayment account and an equity account;

and, to further allocate and credit to an individual retirement or education account a monthly savings amount that is computed by multiplying the monthly interest payment by a savings rate that is a function of at least one economic benchmark, the method comprising;

a) establishing an interest payment account for the borrower;

b) establishing an equity accrual account for the borrower;

c) establishing an individual retirement or education account for the borrower;

d) computing and recording the monthly interest payment;

e) computing and recording the monthly principal repayment;

f) selecting and recording the economic benchmark;

g) computing and recording the savings rate to be applied to the monthly interest payment;

h) computing the monthly savings amount to be allocated and credited to the individual retirement or education account by multiplying the monthly interest payment by the savings rate;

i) invoicing the borrower for the monthly savings amount;

j) upon receipt by the loan provider from the borrower of the monthly home loan repayment, automatically allocating and crediting the monthly interest payment to the interest payment account; and

, automatically allocating and crediting the monthly principal repayment to the equity accrual account;

k) upon receipt by the loan provider from the borrower of the monthly savings amount, automatically allocating and crediting the monthly savings amount to the individual retirement or education account.

2. The method according to claim 1 wherein the individual retirement or education account is a traditional Individual Retirement Account (IRA).

3. The method according to claim 1 wherein the individual retirement or education account is a Roth IRA.

4. The method according to claim 1 wherein the individual retirement or education account is a Spousal IRA.

5. The method according to claim 1 wherein the individual retirement or education account is a Group IRA.

6. The method according to claim 1 wherein the individual retirement or education account is an SEP IRA.

7. The method according to claim 1 wherein the individual retirement or education account is a SIMPLE IRA.

8. The method according to claim 1 wherein the individual retirement or education account is an Education IRA.

9. The method according to claim 1 wherein the individual retirement or education account is a 401 (K) Plan.

10. The method according to claim 1 wherein the individual retirement or education account is a 403(b) Plan.

11. The method according to claim 1 wherein the individual retirement or education account is a 457 Plan.

12. The method according to claim 1 wherein the individual retirement or education account is a Keogh Plan.

13. The method according to claim 1 wherein the savings rate is a function of a benchmark rate and an applicable interest rate.

14. The method according to claim 13 wherein the benchmark rate is selected from the group composing:

a) United States Federal Funds Rate;

b) 5 Year United States Treasury Note Yield;

c) 10 Year United States Treasury Note Yield;

d) 30 Year United States Treasury Bond Yield;

e) London Interbank Offered Rate;

f) Mortgage-Backed Security Yield;

g) National Average Mortgage Interest Rate 30 Year Fixed Rate Mortgage;

h) National Average Mortgage Interest Rate 20 Year Fixed Rate Mortgage;

i) National Average Mortgage Interest Rate 15 Year Fixed Rate Mortgage;

j) National Average Mortgage Interest Rate 3/1 Adjustable Rate Mortgage;

k) National Average Mortgage Interest Rate 5/1 Adjustable Rate Mortgage;

l) National Average Mortgage Interest Rate 7/1 Adjustable Rate Mortgage;

m) National Average Mortgage Interest Rate 7/1 Convertible Adjustable Rate Mortgage;

n) National Average Mortgage Interest Rate Interest-only 30 Year Fixed Rate Mortgage;

o) National Average Mortgage Interest Rate Interest-only 20 Year Fixed Rate Mortgage;

p) National Average Mortgage Interest Rate Interest-only 15 Year Fixed Rate Mortgage;

q) National Average Mortgage Interest Rate Interest-only 3/1 Adjustable Rate Mortgage;

r) National Average Mortgage Interest Rate Interest-only 5/1 Adjustable Rate Mortgage;

s) National Average Mortgage Interest Rate Interest-only 7/1 Adjustable Rate Mortgage;

t) Regional, State, or Local Average Mortgage Interest Rate;

u) Averages for 2/28 Adjustable Rate Mortgages;

v) State-sponsored mortgage interest rates.

15. The method of claim 13, wherein the savings rate is computed by the ratio obtained when the difference between the applicable interest rate and the benchmark is divided by the applicable interest rate.

16. The method of claim 13 wherein a premium is added to the benchmark rate to form an augmented benchmark rate, and the savings rate is computed by the ratio obtained when the difference between the augmented benchmark rate and the benchmark rate is divided by the augmented benchmark rate.

17. The method of claim 13, wherein the savings rate is calculated as the difference between a second Benchmark Rate and a first Benchmark Rate, divided by the second Benchmark Rate.

18. A system used by a loan provider of home loans secured by a mortgage for promoting retirement savings on the part of a borrower concurrently with the borrower'"'"'s acquisition of a home, by allocating and crediting each monthly home loan repayment made by the borrower in repayment of the home loan to an interest repayment account and an equity accrual account;

and, further allocating and crediting to an individual retirement or education account a monthly savings amount that is computed by multiplying the monthly interest payment by a savings rate that is a function of at least one economic benchmark, the system comprising computing means having a memory with associated data input/output and processing means;

the computing means;

a) establishing an interest payment account for the borrower;

b) establishing an equity accrual account for the borrower;

c) establishing an individual retirement or education account for the borrower;

d) computing and recording the monthly interest payment;

e) computing and recording the monthly principle repayment;

f) selecting and recording the economic benchmark;

g) computing and recording the savings rate to be applied to the monthly interest payment;

h) computing the monthly savings amount to be allocated and credited to the individual retirement or education account by multiplying the monthly interest payment by the savings rate;

i) invoicing the borrower for the monthly savings amount;

j) upon receipt by the loan provider from the borrower of the monthly home loan repayment, automatically allocating and crediting the monthly interest payment to the interest payment account; and

, automatically allocating and crediting the monthly principal repayment to the equity accrual account;

k) upon receipt by the loan provider from the borrower of the monthly savings amount, automatically allocating and crediting the monthly savings amount to the individual retirement or education account.

19. The system according to claim 18 wherein the individual retirement or education account is a traditional Individual Retirement Account (IRA).

20. The system according to claim 18 wherein the individual retirement or education account is a Roth IRA.

21. The system according to claim 18 wherein the individual retirement or education account is a Spousal IRA.

22. The system according to claim 18 wherein the individual retirement or education account is a Group IRA.

23. The system according to claim 18 wherein the individual retirement or education account is an SEP IRA.

24. The system according to claim 18 wherein the individual retirement or education account is a SIMPLE IRA.

25. The system according to claim 18 wherein the individual retirement or education account is an Education IRA.

26. The system according to claim 18 wherein the individual retirement or education account is a 401 (K) Plan.

27. The system according to claim 18 wherein the individual retirement or education account is a 403(b) Plan.

28. The system according to claim 18 wherein the individual retirement or education account is a 457 Plan.

29. The system according to claim 18 wherein the individual retirement or education account is a Keogh Plan.

30. The system according to claim 18 wherein the savings rate is a function of a benchmark rate and an applicable interest rate or a premium.

31. The system according to claim 30 wherein the benchmark rate is selected from the group comprising:

a) United States Federal Funds rate;

b) 5 Year United States Treasury Note yield;

c) 10 Year United States Treasury Note yield;

d) 30 Year United States Treasury Bond yield;

e) London Interbank Offered rate;

f) Mortgage-Backed Security yield;

g) National Average Mortgage Interest Rate 30 Year Fixed Rate Mortgage;

h) National Average Mortgage Interest Rate 20 Year Fixed Rate Mortgage;

i) National Average Mortgage Interest Rate 15 Year Fixed Rate Mortgage;

j) National Average Mortgage Interest Rate 3/1 Adjustable Rate Mortgage;

k) National Average Mortgage Interest Rate 5/1 Adjustable Rate Mortgage;

l) National Average Mortgage Interest Rate 7/1 Adjustable Rate Mortgage;

m) National Average Mortgage Interest Rate 7/1 Convertible Adjustable Rate Mortgage;

n) National Average Mortgage Interest Rate Interest-only 30 Year Fixed Rate Mortgage;

o) National Average Mortgage Interest Rate Interest-only 20 Year Fixed Rate Mortgage;

p) National Average Mortgage Interest Rate Interest-only 15 Year Fixed Rate Mortgage;

q) National Average Mortgage Interest Rate Interest-only 3/1 Adjustable Rate Mortgage;

r) National Average Mortgage Interest Rate Interest-only 5/1 Adjustable Rate Mortgage;

s) National Average Mortgage Interest Rate Interest-only 7/1 Adjustable Rate Mortgage;

t) Regional, State, or Focal Average Mortgage Interest Rate;

u) Averages for 2/28 Adjustable Rate Mortgages;

v) State-sponsored mortgage interest rates.

32. The system of claim 30, wherein the savings rate is computed by the ratio obtained when the difference between an applicable interest rate and the benchmark is divided by the applicable interest rate.

33. The system of claim 30 wherein a premium is added to the benchmark rate to form an augmented benchmark rate, and the savings rate is computed by the ratio obtained when the difference between the augmented benchmark rate and the benchmark rate is divided by the augmented benchmark rate.

34. The system of claim 30 wherein the savings rate is calculated as the difference between a second Benchmark Rate and a first Benchmark Rate, divided by the second Benchmark Rate.

35. A method employed by a loan provider of home loans secured by a mortgage, for using a computer having a memory with associated data input/output and processing means, to allocate and credit a borrower'"'"'s monthly home loan repayments to the loan provider to an interest repayment account and an equity account;

and, to further allocate and credit to an individual retirement or education account a monthly savings amount that is computed by multiplying the monthly interest payment by a savings rate that is a function of at least one economic benchmark, the method comprising;

a) establishing an interest payment account for the borrower;

b) establishing an equity accrual account for the borrower;

c) establishing an individual retirement or education account for the borrower;

d) computing and recording the monthly interest payment;

e) computing and recording the monthly principle repayment;

f) selecting and recording the economic benchmark;

g) computing and recording the savings rate to be applied to the monthly interest payment;

h) computing the monthly savings amount to be allocated and credited to the individual retirement or education account by multiplying the monthly interest payment by the savings rate;

i) invoicing the borrower for the monthly savings amount;

j) upon receipt by the loan provider from the borrower of the monthly home loan repayment, automatically allocating and crediting the monthly interest payment to the interest payment account; and

, automatically allocating and crediting the monthly principal repayment to the equity accrual account;

k) upon receipt by the loan provider from the borrower of the monthly home loan repayment, automatically debiting the monthly savings amount from the monthly interest payment and allocating the monthly savings amount to the individual retirement or education account; and

thereafter automatically allocating and crediting the remaining monthly interest payment to the interest payment account and the monthly principal repayment to the equity accrual account.

36. The method according to claim 35 wherein the individual retirement or education account is a traditional Individual Retirement Account (IRA).

37. The method according to claim 35 wherein the individual retirement or education account is a Roth IRA.

38. The method according to claim 35 wherein the individual retirement or education account is a Spousal IRA.

39. The method according to claim 35 wherein the individual retirement or education account is a Group IRA.

40. The method according to claim 35 wherein the individual retirement or education account is an SEP IRA.

41. The method according to claim 35 wherein the individual retirement or education account is a SIMPLE IRA.

42. The method according to claim 35 wherein the individual retirement or education account is an Education IRA.

43. The method according to claim 35 wherein the individual retirement or education account is a 401 (K) Plan.

44. The method according to claim 35 wherein the individual retirement or education account is a 403(b) Plan.

45. The method according to claim 35 wherein the individual retirement or education account is a 457 Plan.

46. The method according to claim 35 wherein the individual retirement or education account is a Keogh Plan.

47. The method according to claim 35 wherein the savings rate is a function of a benchmark rate and an applicable interest rate.

48. The method according to claim 47 wherein the benchmark rate is selected from the group comprising:

a) United States Federal Funds Rate;

b) 5 Year United States Treasury Note Yield;

c) 10 Year United States Treasury Note Yield;

d) 30 Year United States Treasury Bond Yield;

e) London Interbank Offered Rate;

f) Mortgage-Backed Security Yield;

g) National Average Mortgage Interest Rate 30 Year Fixed Rate Mortgage;

h) National Average Mortgage Interest Rate 20 Year Fixed Rate Mortgage;

i) National Average Mortgage Interest Rate 15 Year Fixed Rate Mortgage;

j) National Average Mortgage Interest Rate 3/1 Adjustable Rate Mortgage;

k) National Average Mortgage Interest Rate 5/1 Adjustable Rate Mortgage;

l) National Average Mortgage Interest Rate 7/1 Adjustable Rate Mortgage;

m) National Average Mortgage Interest Rate 7/1 Convertible Adjustable Rate Mortgage;

n) National Average Mortgage Interest Rate Interest-only 30 Year Fixed Rate Mortgage;

o) National Average Mortgage Interest Rate Interest-only 20 Year Fixed Rate Mortgage;

p) National Average Mortgage Interest Rate Interest-only 15 Year Fixed Rate Mortgage;

q) National Average Mortgage Interest Rate Interest-only 3/1 Adjustable Rate Mortgage;

r) National Average Mortgage Interest Rate Interest-only 5/1 Adjustable Rate Mortgage;

s) National Average Mortgage Interest Rate Interest-only 7/1 Adjustable Rate Mortgage;

t) Regional, State, or Local Average Mortgage Interest Rate;

u) Averages for 2/28 Adjustable Rate Mortgages;

v) State-sponsored mortgage interest rates.

49. The method of claim 47, wherein the savings rate is computed by the ratio obtained when the difference between the applicable interest rate and the benchmark is divided by the applicable interest rate.

50. The method of claim 47, wherein a premium is added to the benchmark rate to form an augmented benchmark rate, and the savings rate is computed by the ratio obtained when the difference between the augmented benchmark rate and the benchmark rate is divided by the augmented benchmark rate.

51. The method of claim 47, wherein the savings rate is calculated as the difference between a second Benchmark Rate and a first Benchmark Rate, divided by the second Benchmark Rate.

52. A system used by a loan provider of home loans secured by a mortgage for promoting retirement savings on the part of a borrower concurrently with the borrower'"'"'s acquisition of a home, by allocating and crediting each monthly home loan repayment made by the borrower in repayment of the home loan to an interest repayment account and an equity accrual account;

and, further allocating and crediting to an individual retirement or education account a monthly savings amount that is computed by multiplying the monthly interest payment by a savings rate that is a function of at least one economic benchmark, the system comprising computing means having a memory with associated data input/output and processing means;

the computing means;

a) establishing an interest payment account for the borrower;

b) establishing an equity accrual account for the borrower;

c) establishing an individual retirement or education account for the borrower;

d) computing and recording the monthly interest payment;

e) computing and recording the monthly principle repayment;

f) selecting and recording the economic benchmark;

g) computing and recording the savings rate to be applied to the monthly interest payment;

h) computing the monthly savings amount to be allocated and credited to the individual retirement or education account by multiplying the monthly interest payment by the savings rate;

i) invoicing the borrower for the monthly savings amount;

j) upon receipt by the loan provider from the borrower of the monthly home loan repayment, automatically allocating and crediting the monthly interest payment to the interest payment account; and

, automatically allocating and crediting the monthly principal repayment to the equity accrual account;

k) upon receipt by the loan provider from the borrower of the monthly home loan repayment, automatically debiting the monthly savings amount from the monthly interest payment and allocating the monthly savings amount to the individual retirement or education account; and

thereafter automatically allocating and crediting the remaining monthly interest payment to the interest payment account and the monthly principal repayment to the equity accrual account.

53. The system according to claim 52 wherein the individual retirement or education account is a traditional Individual Retirement Account (IRA).

54. The system according to claim 52 wherein the individual retirement or education account is a Roth IRA.

55. The system according to claim 52 wherein the individual retirement or education account is a Spousal IRA.

56. The system according to claim 52 wherein the individual retirement or education account is a Group IRA.

57. The system according to claim 52 wherein the individual retirement or education account is an SEP IRA.

58. The system according to claim 52 wherein the individual retirement or education account is a SIMPLE IRA.

59. The system according to claim 52 wherein the individual retirement or education account is an Education IRA.

60. The system according to claim 52 wherein the individual retirement or education account is a 401 (K) Plan.

61. The system according to claim 52 wherein the individual retirement or education account is a 403(b) Plan.

62. The system according to claim 52 wherein the individual retirement or education account is a 457 Plan.

63. The system according to claim 52 wherein the individual retirement or education account is a Keogh Plan.

64. The system according to claim 52 wherein the savings rate is a function of a benchmark rate and an applicable interest rate or a premium.

65. The system according to claim 64 wherein the benchmark rate is selected form the group comprising:

a) United States Federal Funds rate;

b) 5 Year United States Treasury Note yield;

c) 10 Year United States Treasury Note yield;

d) 30 Year United States Treasury Bond yield;

e) London Interbank Offered rate;

f) Mortgage-Backed Security yield;

g) National Average Mortgage Interest Rate 30 Year Fixed Rate Mortgage;

h) National Average Mortgage Interest Rate 20 Year Fixed Rate Mortgage;

i) National Average Mortgage Interest Rate 15 Year Fixed Rate Mortgage;

j) National Average Mortgage Interest Rate 3/1 Adjustable Rate Mortgage;

k) National Average Mortgage Interest Rate 5/1 Adjustable Rate Mortgage;

l) National Average Mortgage Interest Rate 7/1 Adjustable Rate Mortgage;

m) National Average Mortgage Interest Rate 7/1 Convertible Adjustable Rate Mortgage;

n) National Average Mortgage Interest Rate Interest-only 30 Year Fixed Rate Mortgage;

o) National Average Mortgage Interest Rate Interest-only 20 Year Fixed Rate Mortgage;

p) National Average Mortgage Interest Rate Interest-only 15 Year Fixed Rate Mortgage;

q) National Average Mortgage Interest Rate Interest-only 3/1 Adjustable Rate Mortgage;

r) National Average Mortgage Interest Rate Interest-only 5/1 Adjustable Rate Mortgage;

s) National Average Mortgage Interest Rate Interest-only 7/1 Adjustable Rate Mortgage;

t) Regional, State, or Local Average Mortgage Interest Rate;

u) Averages for 2/28 Adjustable Rate Mortgages;

v) State-sponsored mortgage interest rates.

66. The system of claim 64, wherein the savings rate is computed by the ratio obtained when the difference between an applicable interest rate and the benchmark is divided by the applicable interest rate.

67. The system of claim 64 wherein a premium is added to the benchmark rate to form an augmented benchmark rate, and the savings rate is computed by the ratio obtained when the difference between the augmented benchmark rate and the benchmark rate is divided by the augmented benchmark rate.

68. The system of claim 64 wherein the savings rate is calculated as the difference between a second Benchmark Rate and a first Benchmark Rate, divided by the second Benchmark Rate.