Patent ID: 8266034
Filing Date: 2012-09-11
Classification: G06Q

Abstract:
1. A processor-implemented method for managing variable rate debt comprising: receiving, by a processor, information relating to the variable rate debt of a borrower; determining, by the processor, based on the received information, a budget for interest owed on the variable rate debt to be applied by the borrower during a time period when an interest rate on the variable rate debt is below a first predetermined low interest rate level; calculating by the processor, a value of at least a portion of any existing current budgetary excess to be applied by the borrower to reduce future interest rate risk by performing at least one of i) the early retirement of principal associated with the variable rate debt and ii) the funding of a sinking fund; calculating by the processor, a value of at least a portion of any accumulated budgetary excess; and transferring, by the processor, to the borrower, of the calculated value for the borrower to apply during a time period when the interest rate is above a first predetermined high interest rate level to reduce an amount of debt service.