Principal first loan product

A system for providing a principal-first home mortgage loan comprising:

• an origination subsystem device including a first processor and a first memory in communication with the processor, wherein the first processor is configured to receive and pre-qualify borrowers for a principal-first home mortgage loan;
• a processing subsystem device including a second processor and a second memory in communication with the processor, wherein the second processor is configured to process, underwrite and close the principal-first home mortgage loan, wherein processing includes at least one of charging the borrower a one-time up-front fee or charging the borrower an above-market interest rate;
• and
• a servicing subsystem device including a third processor and a third memory in communication with the processor, wherein the third processor is configured to apply an entire amount of each payment received from the borrower for the principal-first home mortgage loan to a principal of the principal-first home mortgage loan during a defined time period, automatically re-amortize the principal-first home mortgage loan at a remaining loan principal balance and a remaining loan term after the defined time period and apply each payment from the borrower received after the defined time period to the principal-first loan in accordance with the re-amortization,
• wherein the principal-first home mortgage loan does not accrue interest during the defined time period and a total amount applied to the principle during the defined time period is less than a total principle-first home mortgage loan amount and wherein a first required per period payment amount received during the defined time period does not exceed a second required per period payment amount, wherein the second required per period payment amount is a payment amount the borrower would pay if the borrower was making principal and interest payments on the loan during the defined time period.

An apparatus comprising a non-transitory computer readable storage medium with computer-executable instructions stored therein, the instructions when executed causing a processing device to perform:

• qualifying a borrower for a principal-first home mortgage loan;
• processing the principal-first home mortgage loan, wherein processing includes at least one of charging the borrower a one-time up-front fee or charging the borrower an above-market interest rate;
• applying an entire amount of each payment received from the borrower for the principal-first home mortgage loan to a principal of the principal-first home mortgage loan during a defined time period, such that a total amount applied to the principle during the defined time period is less than a total principle-first home mortgage loan amount;
• automatically, re-amortizing the principal-first home mortgage loan at a remaining loan principal balance and a remaining loan term after the defined time period;
• and
• applying each payment from the borrower received after the defined time period to the principal-first home mortgage loan in accordance with the re-amortization,
• wherein the principal-first home mortgage loan does not accrue interest during the defined time period and wherein a first required per period payment amount received during the defined time period does not exceed a second required per period payment amount, wherein the second required per period payment amount is a payment amount the borrower would pay if the borrower was making principal and interest payments on the loan during the defined time period.