Patent ID: 8626644

Claim:
In a loan option system having a loan server accessible through a network to a borrower computer external to the loan option system and a loan processor for providing loan parameters to the loan server, a computer implemented method for determining and adjusting the loan parameters, the method comprising: receiving a principal value for a loan via the loan processor from the borrower computer, the principal value corresponding to the loan balance, wherein the loan has an interest rate and a loan term corresponding to a specified number of payments, and wherein at least one omitted payment is permissible within a specified period, and wherein the specified period is any period negotiated at loan inception, and wherein the interest rate increases by a specified amount for each omitted payment, wherein the specified amount is a value negotiated at loan inception; upon determining via the loan processor that an omitted payment has occurred and that the omitted payment is permissible, updating the loan parameters via the loan option module, wherein said updating the loan parameters includes: increasing the interest rate via the loan processor in concert with an interest rate module; determining accrued interest via the loan processor in concert with the interest rate module; determining applicable fees via the loan processor in concert with a fee module, due to the omitted payment; and determining an updated loan balance via the loan option module according to the loan balance, the accrued interest, and the applicable fees; providing the updated loan balance to the loan server via the loan processor; and providing the updated loan balance from the loan server to the borrower computer via the network.