budget & home equity line of credit


B

brad

I want to include my home equity line of credit payment in
my budget.

It seems Money treats home equity loans like a credit card
account. When I add the loan payment as a recrring bill,
it is itemized as loan interest and a credit card payment.

When I set up the budget, the credit card payment (home
equity line of credit payment) isn't included in the debt
group, just the interest payment.

I want it to look like my home loan - a transfer in the
debt group that matches my loan payment.
 
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J

John DeMastri

You could set it up as a mortgage with whatever balance and rate you
currently have on the HELOC.

The problem is that it isn't a home loan, really. When you use the HELOC
(say, $1000 for golf clubs), the expense is the item you bought, not the
house, like it was for the mortgage.

This is really related to the general case of the "my credit card payments
aren't included in my budget" problem. Check the FAQ for many answers and
workarounds for this.

- John
 
C

Chad

I think this has something to do with the fact that when
you pay money towards principle, you're not actually
paying out of your net worth. You're just transferring
money between your net worth in your checking account to
your net worth in your home equity. The only money that
really leaves and makes any difference in your net worth
is the money you spend on interest. That money is gone to
somebody elses account. It doesn't really make sense,
though, not to include all of it in the budget. Sorry I
couldn't help work around that. However, every debt
account I have, I didn't exactly set up how it should be.
Such as, all my credit cards, I treat as loans since I no
longer use them and am just paying them off. I pretty
much set everything up as a simple loan to avoid
confusion, including my house. When you do that,
everything is included in your budget. Interest is still
calculated and whatnot, but there is no "equity" that all
my principle payments are going to so the program sees it
as money leaving all my accounts.
 
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