transaction 30 with the lender 20 for example the borrower 10 may submit a payment 90 to the limit that credits are available in the reserve account 50 the lender 20 automatically deducts funds from the reserve account 50 in the event the monthly mortgage or loan payment is late or not paid in full as will be further described below alternatively at his or her option the borrower 10 may preferably withdraw funds 40 from the reserve account 50 and use the funds for any other purpose decreasing credits in the reserve account 50 increases the principal balance 60 of the mortgage or loan and raises the monthly mortgage or loan payment 70 as will be further described below the amount that the monthly mortgage payment is reduced by prepayments to or conversely increased by withdrawing money from the reserve account 50 also depends on the terms of the mortgage or loan agreement 80 for example the mortgage or loan terms may have fixed or variable interest rates which are taken into account the lender 20 may also charge transaction fees for prepayments or deductions or withdrawals from the reserve account 50 if the borrower 10 does not make a payment 90 to the lender 20 and a monthly mortgage or loan payment is due 100 the lender 20 determines if the reserve account 50 has sufficient credits to pay the monthly payment 110 if credit funds are available the reserve account 50 is.