US6006207A
Expired / Lapsed
US
⏱️ 0.0 years remaining
System and method for loan prepayment discounts
Assignee: Individual
•
Filing: 1998-04-17
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Granted: 1999-12-21
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Expires: 2018-04-17
Abstract
Abstract A method and system of implementing a loan in a billing system includes memory storing information relating to the loan, the information including a principal balance of the loan, a term of the loan, and an interest rate of the loan. A prepayment amount that is a portion of the principal balance of the loan is selected. A present value of the prepayment amount is determined and a discount amount is selected. A discounted prepayment amount is determined based on the prepayment amount and the present value of the prepayment amount. The discount amount may be less than, equal to or greater than the difference between the prepayment amount and the present value of the prepayment amount. The discount amount may be greater than the difference, for example, for promotional purposes. A discounted prepayment amount that is the prepayment amount less the discount amount is determined and a discounted prepayment offer is transmitted to the customer of the loan, the discounted prepayment offer including an indication of the discounted prepayment amount. The discounted prepayment is received from the customer of the loan and the prepayment amount is deducted from the principal balance of the loan.
Inventors
- 👤 Ravneet Kaur Mumick
- 👤 Inderpal Singh Mumick
Bibliographic Details
Application Number
—
Jurisdiction
US
Data Source
google_patents
Last Synchronized
2026-11-04 16:26
CPC Classifications
G; G06; G06Q; G06Q30/00; G06Q30/06; G06Q30/0601; G06Q40/00; G06Q40/02; G06Q40/03
Claims Analysis
Total Claims: 27
Claim 1
Independent Claim
136 words
A method of implementing by a computer, a loan in a computer system comprising memory, the memory storing information relating to the loan, the information including a principal balance of the loan, a term of the loan, and an interest rate of the loan, the method comprising the steps of: selecting a prepayment amount that is a portion of the principal balance of the loan; determining a present value of the prepayment amount; determining a discounted prepayment amount based on the prepayment amount and the present value of the prepayment amount; transmitting a discounted prepayment offer to the customer of the loan, the discounted prepayment offer including an indication of the discounted prepayment amount; receiving the discounted prepayment from the customer of the loan; and deducting the prepayment amount from the principal balance of the loan.
Claim 2
Independent Claim
136 words
A method of implementing by a computer, a loan in a computer system comprising memory, the memory storing information relating to the loan, the information including a principal balance of the loan, a term of the loan, and an interest rate of the loan, the method comprising the steps of: selecting a prepayment amount that is a portion of the principal balance of the loan; determining a present value of the prepayment amount; determining a discounted prepayment amount based on the prepayment amount and the present value of the prepayment amount; transmitting a discounted prepayment offer to the customer of the loan, the discounted prepayment offer including an indication of the discounted prepayment amount; receiving the discounted prepayment from the customer of the loan; and deducting the prepayment amount from the principal balance of the loan.
Claim 3
Dependent Claim
37 words
The method of claim 1, wherein the step of determining a discounted prepayment amount comprises the steps of: selecting a discount amount; and determining a discounted prepayment amount that is the prepayment amount less the discount amount.
Claim 4
Dependent Claim
26 words
The method of claim 2, wherein the discount amount is less than the difference between the prepayment amount and the present value of the prepayment amount.
Claim 5
Dependent Claim
26 words
The method of claim 2, wherein the discount amount is equal to the difference between the prepayment amount and the present value of the prepayment amount.
Claim 6
Dependent Claim
26 words
The method of claim 2, wherein the discount amount is greater than the difference between the prepayment amount and the present value of the prepayment amount.
Claim 7
Dependent Claim
50 words
The method of claim 1, further comprising the steps of: receiving a current interest rate; determining whether the current interest rate is greater than the interest rate of the loan; if the current interest rate is greater than the interest rate of the loan, performing the steps of claim 1.
Claim 8
Dependent Claim
39 words
The method of claim 1, further comprising the step of: charging a greater loan origination fee, loan discount, or interest rate when the loan is originated, in return for allowing a loan customer the option of a prepayment discount.
Claim 9
Dependent Claim
19 words
The method of claim 1, wherein the loan is a home mortgage, an automobile loan, or a business loan.
Claim 10
Independent Claim
146 words
A system for implementing by a computer a loan, the system comprising: a computer system comprising: a processor; and a memory storing information relating to the loan, the information including a principal balance of the loan, a term of the loan, and an interest rate of the loan, and program instructions executable by the processor for performing the steps of: selecting a prepayment amount that is a portion of the principal balance of the loan; determining a present value of the prepayment amount; determining a discounted prepayment amount based on the prepayment amount and the present value of the prepayment amount; transmitting a discounted prepayment offer to the customer of the loan, the discounted prepayment offer including an indication of the discounted prepayment amount; receiving the discounted prepayment from the customer of the loan; and deducting the prepayment amount from the principal balance of the loan.
Claim 11
Independent Claim
146 words
A system for implementing by a computer a loan, the system comprising: a computer system comprising: a processor; and a memory storing information relating to the loan, the information including a principal balance of the loan, a term of the loan, and an interest rate of the loan, and program instructions executable by the processor for performing the steps of: selecting a prepayment amount that is a portion of the principal balance of the loan; determining a present value of the prepayment amount; determining a discounted prepayment amount based on the prepayment amount and the present value of the prepayment amount; transmitting a discounted prepayment offer to the customer of the loan, the discounted prepayment offer including an indication of the discounted prepayment amount; receiving the discounted prepayment from the customer of the loan; and deducting the prepayment amount from the principal balance of the loan.
Claim 12
Dependent Claim
50 words
The system of claim 9, wherein the program instructions executable by the processor for performing the step of determining a discounted prepayment amount comprises program instructions for performing the steps of: selecting a discount amount; and determining a discounted prepayment amount that is the prepayment amount less the discount amount.
Claim 13
Dependent Claim
26 words
The system of claim 10, wherein the discount amount is less than the difference between the prepayment amount and the present value of the prepayment amount.
Claim 14
Dependent Claim
26 words
The system of claim 10, wherein the discount amount is equal to the difference between the prepayment amount and the present value of the prepayment amount.
Claim 15
Dependent Claim
26 words
The system of claim 10, wherein the discount amount is greater than the difference between the prepayment amount and the present value of the prepayment amount.
Claim 16
Dependent Claim
62 words
The system of claim 9, wherein the program instructions executable by the processor further comprise program instructions for performing the steps of: receiving a current interest rate; determining whether the current interest rate is greater than the interest rate of the loan; if the current interest rate is greater than the interest rate of the loan, performing the steps of claim 9.
Claim 17
Dependent Claim
51 words
The system of claim 9, wherein the program instructions executable by the processor further comprise program instructions for performing the step of: charging a greater loan origination fee, loan discount, or interest rate when the loan is originated, in return for allowing a loan customer the option of a prepayment discount.
Claim 18
Dependent Claim
19 words
The system of claim 9, wherein the loan is a home mortgage, an automobile loan, or a business loan.
Claim 19
Dependent Claim
147 words
A computer program storage device, for use in a billing system comprising a processor and a memory storing information relating to a loan, the information including a principal balance of the loan, a term of the loan, and an interest rate of the loan, the computer program storage device containing program instructions executable by the processor for performing the steps of: selecting a prepayment amount that is a portion of the principal balance of the loan; determining a present value of the prepayment amount; determining a discounted prepayment amount based on the prepayment amount and the present value of the prepayment amount; transmitting a discounted prepayment offer to the customer of the loan, the discounted prepayment offer including an indication of the discounted prepayment amount; receiving the discounted prepayment from the customer of the loan; and deducting the prepayment amount from the principal balance of the loan.
Claim 20
Dependent Claim
147 words
A computer program storage device, for use in a billing system comprising a processor and a memory storing information relating to a loan, the information including a principal balance of the loan, a term of the loan, and an interest rate of the loan, the computer program storage device containing program instructions executable by the processor for performing the steps of: selecting a prepayment amount that is a portion of the principal balance of the loan; determining a present value of the prepayment amount; determining a discounted prepayment amount based on the prepayment amount and the present value of the prepayment amount; transmitting a discounted prepayment offer to the customer of the loan, the discounted prepayment offer including an indication of the discounted prepayment amount; receiving the discounted prepayment from the customer of the loan; and deducting the prepayment amount from the principal balance of the loan.
Claim 21
Dependent Claim
49 words
The computer program storage device of claim 17, wherein the program instructions for performing the step of determining a discounted prepayment amount comprise program instructions for performing the steps of: selecting a discount amount; and determining a discounted prepayment amount that is the prepayment amount less the discount amount.
Claim 22
Dependent Claim
29 words
The computer program storage device of claim 18, wherein the discount amount is less than the difference between the prepayment amount and the present value of the prepayment amount.
Claim 23
Dependent Claim
29 words
The computer program storage device of claim 18, wherein the discount amount is equal to the difference between the prepayment amount and the present value of the prepayment amount.
Claim 24
Dependent Claim
29 words
The computer program storage device of claim 18, wherein the discount amount is greater than the difference between the prepayment amount and the present value of the prepayment amount.
Claim 25
Dependent Claim
57 words
The computer program storage device of claim 17, further comprising program instructions for performing the steps of: receiving a current interest rate; determining whether the current interest rate is greater than the interest rate of the loan; if the current interest rate is greater than the interest rate of the loan, performing the steps of claim 1.
Claim 26
Dependent Claim
46 words
The computer program storage device of claim 17, further comprising program instructions for performing the steps of: charging a greater loan origination fee, loan discount, or interest rate when the loan is originated, in return for allowing a loan customer the option of a prepayment discount.
Claim 27
Dependent Claim
22 words
The computer program storage device of claim 17, wherein the loan is a home mortgage, an automobile loan, or a business loan.
References Cited (Backward Citations)
USPTO Annuity & Maintenance Windows
| Annuity Stage | Window Opens | Payment Deadline | Surcharge Period Until | Estimated Fee | Status |
|---|---|---|---|---|---|
| 3.5 Years (Year 4) | 2002-12-20 | 2003-06-21 | 2003-12-21 | $2000.00 | Window Closed / Lapsed |
| 7.5 Years (Year 8) | 2006-12-20 | 2007-06-21 | 2007-12-21 | $3760.00 | Window Closed / Lapsed |
| 11.5 Years (Year 12) | 2010-12-20 | 2011-06-21 | 2011-12-21 | $7700.00 | Window Closed / Lapsed |