Patent ID: 7603305
Filing Date: 2009-10-13
Classification: G06Q

Abstract:
1. A method for establishing a combined collateral loan and investment system which accelerates paying off a mortgage and simultaneously generating wealth for a living mortgagor via an investment account, the mortgage having a term, the collateral loan having tangible collateral, the method using loan amortization parameters to perform a comparative analysis, comprising the steps of: calculating, by a computer processor, a conventional loan payment for a given conventional loan amount at a given conventional rate and a given term, the conventional loan payment comprising a conventional interest payment and a conventional principle payment; determining, by the computer processor, a maximum interest only loan amount for a given interest only rate and the given term at an interest only payment equaling the conventional loan payment, the maximum interest only loan amount not being greater than a given loan to value of the tangible collateral ratio; comparing, by the computer processor, the conventional loan amount with the interest only loan amount; determining, by the computer processor, an amount of the interest only loan amount that is greater than the conventional loan amount for allocation as an initial lump sum for the investment account; calculating, by the computer processor, a loan payment at the given interest only rate and the given term for an amount equal to the given conventional loan amount and the initial lump sum; determining, by the computer processor, an amount of the conventional loan payment that is greater than the amount of the loan payment, the amount of the conventional loan payment that is greater being the amount for systematic and fixed deposits to the investment account; receiving, by a mortgagee, a plurality of systematic and fixed payments over the given term from the living mortgagor, the amount of each of the plurality of systematic and fixed payments equaling the conventional loan payment; dividing, by the mortgagee, the systematic and fixed payment into a first portion and a second portion, the first portion being equal to the amount of the second interest only loan payment, and the second portion being equal to the amount of the systematic and fixed deposits to the investment account; applying, by the mortgagee, the first portion of the systematic and fixed payment to satisfy the interest due on the mortgage; applying, by the mortgagee, the second portion of the systematic and fixed payment to the investment account; applying, by the mortgagee, an amount received that is greater than the systematic and fixed payment and that is designated for the investment account to the investment account and an amount that is greater than the systematic and fixed payment that is designated to reduce the mortgage principle to the mortgage; allowing the investment account to grow over time; and applying a portion of the investment account to satisfy the mortgage.