Patent ID: 8401961

Claim:
A computer implemented method of structuring a supplemental interest mortgage, comprising: issuing a principal debt obligation to a borrower, wherein the principal debt obligation is issued over a communications network connected to a computer processor on which the principal debt obligation is calculated; wherein the principal debt obligation comprises (i) a principal loan based on a principal debt amount and having original terms, and (ii) a principal interest to compensate a lender for the borrower's use of the principal debt amount; and determining on the computer processor a supplemental debt obligation to the borrower based on the principal debt amount, wherein the supplemental debt obligation is issued over a communications network connected to the computer processor on which the supplemental debt obligation is calculated; cancelling the supplemental debt obligation when at least one risk characteristic is reduced to at least one predetermined condition without cancelling the principal debt obligation and without changing the original terms and the principal debt amount of the principal debt obligation; wherein the supplemental debt obligation comprises a supplemental interest based on the principal debt amount to compensate the lender for a risk of nonpayment by the borrower; and wherein the principal debt obligation and the supplemental debt obligation are secured by a single security instrument.