MULTIPLE RATE LOAN

• US 20120030099A1
• Filed: 07/30/2010
• Published: 02/02/2012
• Est. Priority Date: 07/30/2010
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Marshall, Edna Waters, Curry, Lisa D., Hardy, Ashley C.
• Granted Patent: US 8,280,808 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Embodiments of the present invention relate to methods and apparatuses for implementing, in connection with a loan account, a loan management tool. In some embodiments, the method includes: storing information relating to a loan account associated with a borrower in a storage device, wherein a first interest rate is associated with the loan account, segmenting the loan account into at least a first spend category, and associating a second interest rate with the first spend category, wherein the second interest rate is different from the first interest rate. The method may also include receiving a payment comprising a first portion based on the first interest rate and a second portion based on the second interest rate, and applying a first portion of the payment to reducing a balance of the first spend category. In some embodiments, the systems and methods of the present invention are used in connection with a HELOC account.

Claims

1. A computer-implemented method comprising:

storing information relating to a loan account associated with a borrower in a storage device, wherein a first interest rate is associated with the loan account;

segmenting the loan account into at least a first spend category; and

associating a second interest rate with the first spend category, wherein the second interest rate is different from the first interest rate.

2. The method of claim 1, further comprising:

receiving a payment comprising a first portion based on the first interest rate and a second portion based on the second interest rate; and

applying a first portion of the payment to reducing a balance of the first spend category.

3. The method of claim 2, further comprising:

applying a second portion of the payment to reducing a partial balance of the loan account, wherein the partial balance of the loan account does not include the balance of the first spend category.

4. The method of claim 3, further comprising:

receiving instructions from the borrower regarding allocating the payment between the balance of the first spend category and the balance of the loan account.

5. The method of claim 4, wherein the instructions are stored in connection with the loan account prior to receipt of the payment.

6. The method of claim 1, further comprising:

generating a billing statement containing an overall balance of the loan account, wherein the overall balance comprises a first interest portion based on the first interest rate and a second interest portion based on the second interest rate.

7. The method of claim 1, further comprising:

allocating purchases made by the borrower to the at least one spend category.

8. The method of claim 7, wherein allocating purchases comprises:

receiving an indication that a purchase has been made using funds drawn from the loan account;

associating the purchase with one of the one or more spend categories; and

recording in connection with the first spend category an increase in a balance of the spend category equal to the amount of the purchase.

9. The method of claim 8, wherein receiving an indication that a purchase has been made comprises receiving the indication from a device effectuating the purchase.

10. The method of claim 9, wherein associating the purchase comprises associating the purchase with one of the one or more spend categories based on information provided by the device.

11. The method of claim 8, wherein associating the purchase comprises associating the purchase with one of the one or more spend categories based on input received from the borrower.

12. The method of claim 1, wherein segmenting the loan account into at least a first spend category comprises segmenting the loan account into one or more spend categories where one of the spend categories is one of education, home improvement, debt consolidation, miscellaneous, and medical bills.

13. The method of claim 1, further comprising:

setting in connection with each spend category a spending limit; and

generating a notification to the borrower when the difference between a balance of one of the one or more spend categories and the spending limit for the spend category is zero or is less than a predefined amount.

14. The method of claim 1, further comprising:

receiving from the borrower an input; and

calculating, based on the input, an output, wherein the output comprises at least one of the anticipated payoff date, the monthly payment amount, and the total saved interest.

15. The method of claim 14, wherein receiving from the borrower an input comprising receiving an input comprising one of the desired payoff date, the desired monthly payment amount, and the total saved interest.

16. The method of claim 1, wherein the loan account is a line of credit account.

17. The method of claim 1, wherein the loan account is a HELOC account.

18. A computer-implemented method comprising:

storing information relating to a HELOC account associated with a borrower in a storage device, wherein a first interest rate is associated with the HELOC account;

segmenting the loan account into at least a first spend category;

associating a second interest rate with the first spend category, wherein the second interest rate is different from the first interest rate;

receiving a payment comprising a first portion based on the first interest rate and a second portion based on the second interest rate; and

applying a first portion of the payment to reducing a balance of the first spend category.

19. The method of claim 18, further comprising:

applying a second portion of the payment to reducing a partial balance of the loan account, wherein the partial balance of the loan account does not include the balance of the first spend category.

20. The method of claim 19, further comprising:

receiving instructions from the borrower regarding allocating the payment between the balance of the first spend category and the balance of the loan account.

21. The method of claim 18, further comprising:

generating a billing statement containing an overall balance of the loan account, wherein the overall balance comprises a first interest portion based on the first interest rate and a second interest portion based on the second interest rate.

22. A system comprising:

a storage device comprising stored therein information relating to a loan account associated with a borrower, including a first interest rate associated with the loan account;

computer readable program code stored on said storage device or a separate storage device; and

a processor communicably coupled to said storage device or storage devices,

wherein said computer readable program code comprises instructions that when operated by said processor, causes said processor to;

segment the loan account into at least a first spend category; and

associate a second interest rate with the first spend category, wherein the second interest rate is different from the first interest rate.

23. The system of claim 22, wherein said computer readable program code comprises further instructions that when operated by said processor, causes said processor to:

identify a payment comprising a first portion based on the first interest rate and a second portion based on the second interest rate; and

apply a first portion of the payment to reducing a balance of the first spend category.

24. The system of claim 23, wherein said computer readable program code comprises further instructions that when operated by said processor, causes said processor to:

apply a second portion of the payment to reducing a partial balance of the loan account, wherein the partial balance of the loan account does not include the balance of the first spend category.

25. The system of claim 24, further comprising a communication interface configured to receive an input from the borrower, wherein said computer readable program code comprises further instructions that when operated by said processor, causes said processor to:

allocate the payment between the balance of the first spend category and the balance of the loan account according to the input from the borrower.

26. The system of claim 22, wherein said computer readable program code comprises further instructions that when operated by said processor, causes said processor to:

generate a billing statement containing an overall balance of the loan account, wherein the overall balance comprises a first interest portion based on the first interest rate and a second interest portion based on the second interest rate.

27. The system of claim 22, wherein the processor is configured to segment the loan account into two or more spend categories and wherein said computer readable program code comprises further instructions that when operated by said processor, causes said processor to:

allocate purchases made by the borrower to one of the two or more spend categories.

28. The system of claim 27, wherein said computer readable program code comprises further instructions that when operated by said processor, causes said processor to:

associate a purchase with a first spend category of the two or more spend categories; and

record in connection with the first spend category an increase in a balance of the first spend category equal to the amount of the purchase.

29. A computer program product comprising a computer-readable medium having computer-executable computer program code portions stored therein, wherein the computer-executable program code portions comprise:

a first program code portion configured to store information relating to a HELOC account associated with a borrower, wherein a first interest rate is associated with the HELOC account;

a second program code portion configured segment the HELOC account into at least a first spending category; and

a third program code portion configured to associate a second interest rate with the first spending category, wherein the second interest rate is different from the first interest rate.

30. The computer program product of claim 29, wherein the computer-executable program code portions further comprise:

a fourth program code portion configured to identify a payment comprising a first portion based on the first interest rate and a second portion based on the second interest rate; and

a fifth program code portion configured to apply a first portion of the payment to reducing a balance of the first spend category.

31. The computer program product of claim 30, wherein the computer-executable program code portions further comprise:

a sixth program code portion configured to apply a second portion of the payment to reducing a partial balance of the loan account, wherein the partial balance of the loan account does not include the balance of the first spend category.

32. The computer program product of claim 29, wherein the computer-executable program code portions further comprise:

a fourth program code portion configured to generate a billing statement containing an overall balance of the loan account, wherein the overall balance comprises a first interest portion based on the first interest rate and a second interest portion based on the second interest rate.