Home ownership payment system and method

• US 7,627,509 B2
• Filed: 05/02/2006
• Issued: 12/01/2009
• Est. Priority Date: 07/07/2005
• Status: Expired due to Fees

• Current Assignee: CMG Mortgage Services
• Original Assignee: CMG Mortgage Services
• Inventors: George, Christopher M.
• Primary Examiner(s): Havan; Thu Thao
• Application Number:
  US11/381,303
• Publication Number:
  US 20070011084A1
• Time in Patent Office: 1,309 Days
• Field of Search: 705 35- 36
• US Class Current: 705/35
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method for providing a line of credit to a mortgagee, while simultaneously paying off the mortgage loan of the mortgagee, by setting up an integrated account comprised of funds periodically deposited therein by the mortgagee with mortgage payment means associated with the account for paying down the mortgage. The account provides a line of credit to the mortgagee based on the equity the mortgagee has in the predetermined value of the property covered by the mortgage, and means are provided for withdrawal of funds from the account by the mortgagee.

Claims

1. A system for providing an integrated line of credit mortgage account and checking account to a mortgagor, while simultaneously paying off the mortgage loan balance of the mortgagor, comprising:

an integrated account consisting of a line of credit mortgage having a line of credit account balance and integrated with a dedicated checking account having a checking account balance independent of said line of credit account balance comprised of funds periodically deposited therein by said mortgagor;

mortgage payment means associated with the integrated account paying down the mortgage balance of said mortgagor upon depositing of funds into said integrated account therein to debit the checking account balance by the amount of funds automatically moved and crediting the line of credit account balance;

said integrated account providing both a line of credit account, secured by the mortgagor'"'"'s property and based on the equity said mortgagor has in the predetermined value of the mortgagor'"'"'s property, and an integrated checking account to said mortgagor with said integrated account providing for said funds to be deposited into said checking account of said integrated account;

said integrated account having means for moving said funds simultaneously and automatically from said checking account into said line of credit account of said integrated account after the depositing of said funds into said checking account;

means associated with both said line of credit account and said checking account allowing withdrawal of funds from said integrated account by said mortgagor in order to pay other living expenses by automatically transferring funds from said line of credit account to said checking account to fund withdrawals or debits from said checking account to credit checking account balance and debit the line of credit account balance by said transfer amount.

2. In the system of claim 1, wherein said line of credit account has a limit and said means for allowing withdrawal of funds includes funds withdrawal limiting means for allowing said withdrawal from said line of credit account up to said line of credit limit.

7. The system of claim 1 including interest payment means associated with said integrated account for paying off the interest incurred on said mortgage balance automatically from the line of credit account of said integrated account.

8. The system of claim 7 wherein said interest payment means includes means for increasing the balance of said line of credit in said line of credit account to automatically pay off said interest due.

3. A method for providing the payoff of a loan of a mortgage holder in an expedited manner comprising the steps of:

setting up an integrated account, consisting of a line of credit mortgage integrated with a dedicated checking account;

paying down the mortgage balance of said mortgage holder with funds periodically deposited into said integrated account by said mortgage holder;

providing both a line of credit and a checking account to said mortgage holder based on the equity said mortgage holder has in the predetermined value of the property covered by the mortgage of said mortgage holder;

providing for funds to be deposited into said checking account of said integrated account;

moving said funds simultaneously from said checking account into said line of credit portion of said integrated account after the depositing of said funds into said checking account; and

providing means associated with said integrated account for the withdrawal of funds from said integrated account by said mortgage holder by transferring funds from said line of credit account portion of said integrated account to said checking account portion to fund said withdrawals.

4. The method of claim 3, wherein the step of providing means for the withdrawal of funds includes the step of providing means for the withdrawal of funds up to the line of credit of said account.

5. The method of claim 4, including the step of determining the amount of money that would be saved by said mortgage holder in paying down said mortgage in an expedited manner prior to depositing funds into the said integrated account.

6. The method of claim 5, wherein the step of determining the amount of money includes the step of factoring in the current monthly income of said mortgage holder, the anticipated monthly debts other than said mortgage of said mortgage holder, and miscellaneous other monthly expenses anticipated by said mortgage holder to determine the approximate amount of money that would be saved by said mortgage holder on a monthly basis compared to other popular mortgage financing approaches.

9. The method of claim 3 including the step of paying off the interest incurred on said mortgage balance automatically from line of credit portion of said integrated account.

10. The method of claim 9 including the step of increasing the balance of said credit line to pay off said interest.

11. A system for providing a checking account and an integrated line of credit account to a mortgagor, comprising:

an integrated account consisting of a line of credit mortgage account loan with a dedicated checking account comprised of funds periodically deposited therein by said mortgagor;

said line of credit mortgage account loan secured by a property of the mortgagor and having a line of credit account balance based on the equity said mortgagor has in the predetermined value of the mortgagor'"'"'s property;

said dedicated checking account having a checking account balance independent of said line of credit account balance and receiving funds deposited into said integrated account;

mortgage payment means associated with the integrated account paying down the line of credit mortgage loan balance of said mortgagor automatically upon depositing of funds into said integrated checking account therein by transferring the deposited funds from the checking account to the line of credit mortgage account to debit the checking account balance by the amount of funds automatically moved and crediting the line of credit account balance;

fund withdrawal means associated with the integrated account for paying other living expenses by automatically transferring funds from said line of credit account to said checking account to fund withdrawals or debits from said checking account other than to pay down said line of credit mortgage account to credit the checking account balance and debit the line of credit account balance by said transfer amount.