System and method for paying down debt using an equity loan revolving line of credit

A computer program product for use in a mortgage system, the mortgage system maintaining a loan account for a specified principal amount associated with real property, the principal amount having a remaining balance still requiring payment, the loan account configured to accrue loan interest on the remaining balance at a specified interest rate and at specified interval, the computer program product for implementing a computerized system of reducing the remaining balance such that the remaining balance can be paid off more quickly and the borrower is assisted in managing other living expenses, the computer program product comprising one or more computer-readable media having stored thereon computer-executable instructions that, when executed by a processor, cause the mortgage system to perform the following:

• automatically and electronically charge a pre-determined amount of living expenses per specified interval, for one or more of the specified intervals, onto a linked credit card, the linked credit card linked to the loan account for at least the purpose of automated electronic transfers of the credit card balance to the remaining balance of the principal amount, the linked credit card having a credit card interest accrual interval, the credit card interest accrual interval indicative of when credit card interest is charged to the linked credit card based on the balance of the linked credit card, the linked credit card also having a grace period after the interest accrual interval such that payment of the balance of the credit card during the grace period removes accrued credit card interest being charged to the credit card;
• accrue loan interest on the loan account at the specified rate of interest for the one or more specified intervals based on the remaining balance of the loan account;
• automatically and electronically charge the accrued loan interest to the linked credit card to increase credit card balance;
• receive a payment into the loan account;
• apply the payment to the remaining balance of the principal amount to reduce the remaining balance of the principal amount;
• automatically and electronically transfer the credit card balance to the remaining balance of the principal amount before expiration of the grace period, automatically transferring the credit card balance causing the credit card balance to be paid off such that accrued interest charges are avoided and causing the remaining balance of the principal amount to increase by the credit card balance;
• receive a second payment into the loan account;
• and
• apply the second payment to the remaining balance of the principal amount that now includes the automatically and electronically transferred credit card balance to reduce the remaining balance of the principal amount.

A mortgage system, the mortgage system executing a computer program for reducing a remaining balance of a mortgage loan still requiring payment on a loan account for a specified principal amount associated with real property, wherein the loan account is configured to accrue loan interest on the remaining balance at a specified interest rate and at a specified interval, the mortgage system comprising:

• a storage device;
• a processor programmed to:
• receive a request for automatically and electronically charging a pre-determined amount of living expenses per specified interval, for one or more of the specified intervals, onto a linked credit card account, the linked credit card account linked to the loan account for at least the purpose of automated electronic transfers of the linked credit card account balance to the remaining balance of the specified principal amount, the linked credit card account having a credit card account interest accrual interval, the credit card account interest accrual interval indicative of when credit card account interest is charged to the linked credit card account based on the balance of the linked credit card account, the linked credit card account also having a grace period after the interest accrual interval such that payment of the balance of the credit card account during the grace period removes accrued credit card account interest being charged to the credit card account;
• accrue loan interest on the loan account at the specified rate of interest for the one or more specified intervals based on the remaining balance of the loan account;
• automatically and electronically charge the accrued loan interest to the linked credit card account to increase credit card account balance;
• receive data representing a payment into the loan account;
• apply the data representing the payment to the remaining balance of the principal amount to reduce the remaining balance of the principal amount;
• automatically and electronically transfer the credit card account balance to the remaining balance of the principal amount before expiration of the grace period, automatically transfer the credit card account balance causing the credit card account balance to be paid off such that accrued interest charges are avoided and cause the remaining balance of the principal amount to increase by the credit card account balance;
• receive data representing a second payment into the loan account;
• and
• applying the data representing the second payment to the remaining balance of the principal amount that now includes the automatically and electronically transferred credit card account balance to reduce the remaining balance of the principal amount.