Method for calculation of a reduced interest mortgage payment plan

• US 6,269,347 B1
• Filed: 11/17/1998
• Issued: 07/31/2001
• Est. Priority Date: 11/17/1998
• Status: Expired due to Fees

• Current Assignee: Jay M. Berger
• Original Assignee: Jay M. Berger
• Inventors: Berger, Jay M.
• Primary Examiner(s): Millin, V.
• Assistant Examiner(s): AKERS, GEOFFREY R
• Application Number:
  US09/192,852
• Publication Number:
  US 20010013017A1
• Time in Patent Office: 987 Days
• Field of Search: 705/38, 705/36
• US Class Current: 705/38
• 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
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A method for calculating a mortgage which provides application of mortgage payments to principle first and then interest in the amortization schedule of repayment of a conventional loan is disclosed. The disclosure provides a method for calculating mortgage payments on a conventional mortgage loan by applying such payments first to reduction of principle while accumulating accrued interest. Payments are applied towards accrued interest after the principle amount of the loan is reduced.

Claims

1. A method of implementing a fixed term loan repayment plan which comprises:

determining an amount of loan principal to be provided;

calculating a repayment schedule based on a conventional loan amortization table for a given interest rate, repayment term and the selected principal amount;

providing a repayment schedule which applies such monthly payments to repayment of principal due on said loan first;

accumulating interest payable and adding such to the principal amount due; and

applying said term payments to reduction of interest due only after the principal has been repaid.

2. A method of lending money which provides for a deferment of interest received by the lender comprised substantially of the steps of:

calculating a principal amount to be lent to a borrower; and

deciding a fixed monthly payment amount which will allow reduction of the principal amount each payment period while applying each payment to the reduction of principal of the loan only, calculating monthly interest and carrying said amount forward in the principal balance, and applying such term payments to interest only after all the principal amounts of said loan have been paid first.

3. A method of lending money which provides for a deferment of interest earned by the lender comprised substantially of the steps of calculating a periodic payment which will be applied to the reduction of the principal amount of such loan;

calculating the periodic interest on the balance of said principal and accruing and carrying the balance of said accumulated periodic interest forward, and thereafter applying any periodic payments on the loan towards reduction of said accumulated interest only after the principal amount of said loan has been paid down to zero.

4. A method of lending money, which provides for a deferment of the repayment of interest, comprised substantially of applying all periodic loan payments first toward reduction of only the principal amount of the loan, and accumulating and deferring the payment of any interest on the principal until the original principal balance is substantially zero, and thereafter applying loan payments to reduce the accumulated interest without compounding interest for such accumulated and deferred interest amounts.