Patent ID: 6067533
Filing Date: 2000-05-23
Classification: G06Q

Abstract:
A method for determining acceptable interest rates for real estate loans comprising the steps, performed by a processor, of:(a) receiving loan data including personal data relating to a borrower, financial information relating to the borrower's financial position, and loan conditions including a loan term and information on the corresponding real estate, related to a real estate loan;(b) analyzing the borrower's financial information to determine an ability-to-pay rate reflecting an interest rate on the loan based on the borrower's ability to repay a loan in accordance with the loan conditions;(c) determining from the loan data a default rate reflecting an interest rate realizable if the loan is foreclosed and a new loan secured by the real estate originated;(d) determining from the loan data a minimum rate reflecting an interest rate realizable if proceeds from a sale of the real estate before expiration of the loan term are determined to be acceptable and a new loan secured by the real estate originated; and(e) selecting an acceptable return rate reflecting lender preferences based on the ability-to-pay rate, the default rate, the minimum rate, and a predetermined current return rate.