Single premium annuity for satisfying an equity loan

A data processing system for managing an equity loan to a borrower comprising:

• a data store;
• an input device for collecting and inputting into the data processing system a set of data associated with a request for the equity loan;
• and
• a processing module comprising:
• a processor;
• and
• memory operatively coupled to the processing module, wherein the memory stores operational instruction to cause the processing module to:
• calculate an equity value of property owned by the borrower;
• calculate a loan-to-value ratio of the property;
• determine whether to grant the equity loan based on the loan-to-value ratio of the property;
• create an escrow account for the borrower;
• finance the escrow account with a principal of the equity loan;
• record receipt of proceeds of a commercial annuity;
• and
• make a periodic payment against the equity loan using the proceeds of the commercial annuity.

A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform method steps for managing an equity loan to a borrower, the method steps comprising:

• calculating an equity value of property owned by the borrower;
• calculating a loan-to-value ratio of the property;
• determining whether to grant the equity loan based on the loan-to-value ratio of the property;
• creating an escrow account for the borrower;
• financing the escrow account with a principal of the equity loan;
• recording receipt of proceeds of a commercial annuity;
• and
• making a periodic payment of the equity loan with the proceeds of the commercial annuity.