APPARATUS AND METHOD FOR CALCULATING THE LOWERING OF PERIODIC PAYMENTS WITHIN A LOAN REPAYMENT SCHEDULE

• US 20110066546A1
• Filed: 09/15/2009
• Published: 03/17/2011
• Est. Priority Date: 09/15/2009
• Status: Abandoned Application

• Current Assignee: Christian Gilly
• Original Assignee: Christian Gilly
• Inventors: GILLY, CHRISTIAN
• Application Number:
  US12/560,281
• Publication Number:
  US 20110066546A1
• 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

A computer implemented method for calculating loan repayment schedule is disclosed, which may comprise receiving data associated with an initial principal loan amount, an interest rate, and a length of loan term; processing the data using a processor to determine a periodic minimum payment toward the initial principal and the interest, and when the minimum periodic payment is made, a new principal balance is determined by subtracting payment toward principal from the initial principal loan amount, and when a payment in excess of the minimum periodic payment is paid, the new principal balance is calculated by subtracting the excess principal payment and the payment toward principal from the minimum periodic payment from the initial principal; and recalculating a new minimum periodic payment based on remaining time and balance of the loan.

Claims

1. A computer implemented method for calculating loan repayment schedule, comprising:

receiving data associated with an initial principal loan amount, an interest rate, and a length of loan term;

processing the data using a processor to determine a periodic minimum payment toward the initial principal and the interest, and when the minimum periodic payment is made, a new principal balance is determined by subtracting payment toward principal from the initial principal loan amount, and when a payment in excess of the minimum periodic payment is paid, the new principal balance is calculated by subtracting the excess principal payment and the payment toward principal from the minimum periodic payment from the initial principal;

and recalculating a new minimum periodic payment based on remaining time and balance of the loan.

2. The method of claim 1, wherein the minimum periodic payment remains fixed, and the recalculation of the new principal upon payment of the minimum periodic payment and the excess principal payment reduces the length of loan.

3. The method of claim 1, wherein the minimum periodic payment is reduced over the length of loan upon payment of the minimum periodic payment and the excess principal payment.

4. A data processing apparatus for calculating loan repayment schedule, comprising:

means for receiving data associated with an initial principal loan amount, an interest rate, and a length of loan term;

a storage medium adapted to store the data received by the data receiving means; and

a data processor for determining a periodic minimum payment toward the initial principal and the interest, and when the minimum periodic payment is made, a new principal balance is determined by subtracting payment toward principal from the initial principal loan amount, and when a payment in excess of the minimum periodic payment is paid, the new principal balance is calculated by subtracting the excess principal payment and the payment toward principal from the minimum periodic payment from the initial principal, and further recalculating a new minimum periodic payment based on remaining term and balance of the loan.

5. The apparatus of claim 4, wherein the processor determines a fixed minimum periodic payment, and the recalculation of the new principal upon payment of the minimum periodic payment and the excess principal payment reduces the length of loan.

6. The apparatus of claim 4, wherein the processor reduces the minimum periodic payment over the length of loan upon payment of the minimum periodic payment and the excess principal payment.