Mortgage entirely to principal?


M

Mark Horn

Hi,

The last two mortgage payments that I recored in Money did not
calculate the interest correctly. In fact, it applied the entire
amount to principal and nothing to interest. This is, of course,
not how the bank calculates those payments. I bought a house
in November, and the first 5 payments correctly calculated the
principal part and the interest part. But the last two have not.

If I look at the transaction from the checking account (where it
got paid from), it shows a split with principal and interest split.
The amounts for both are shown as "calculated". But when I look
at those two transactions in loan's register, it shows the payment
and the principal as the same amount. I.e. no interest.

Now, of course, I could manually change the loan transaction to
the correct amount, but

a) I don't know what the correct amount should be
b) I'd rather not have to do that all the time

Is there anyway to get Money to calculate the correct split between
P&I for the past two transactions and all transactions going forward?

Thanks,
- Mark
 
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R

Remove ABCD from Email address to reply

At this point I think you will need to manually correct the transactions
that are incorrect and you can either calculate the correct amounts yourself
or get the info from the mortgage company.

The times where I had a problem with mortgage calc is when I downloaded the
transaction from the mortgage company before I went into the "bills" area of
Money and entered the transaction. When the transaction is downloaded
before entered from Bill, the entire amount will be shown as principal.
 
C

Chris Cowles

Remove ABCD from Email address to reply said:
At this point I think you will need to manually correct the
transactions that are incorrect and you can either calculate the
correct amounts yourself or get the info from the mortgage company.
I think if you edit the last valid payment with respect to
interest/principal allocation, Money will prompt that subsequent
payments exist, and ask if you want to adjust the interest/principal
allocations of those. I may be wrong in my recall of what triggers
that prompt, but the prompt does occur under certain circumstances,
and I think it can be used to advantage in this case.

If my recall of the trigger event is correct, edit the last valid
payment by decrementing interest by 0.01, and increment principal by
0.01. That keeps the total balanced. Save the transactions. When Money
gives the prompt about adjusting subsequent payments, say no.

Edit the payment again, reverting to the correct interest/principal
allocation. Save again, and let Money adjust the allocation of
subsequent payments. The result should be appropriate interest and
principal.

If the loan payment is listed in the bill schedule, make sure the
split appears as 'calculated'. If not, recategorize the bill with a
single unrelated category, such as automobile:gasoline. Save the
transaction. Edit it again, this time selecting Loan Payment:
AccountName. That should reset the bill to act correctly. Save it,
then edit it again and check the split to confirm.
 
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M

Mark Horn

If my recall of the trigger event is correct, edit the last valid
payment ...
Edit the payment again, reverting to the correct interest/principal
allocation. Save again, and let Money adjust the allocation of
subsequent payments. The result should be appropriate interest and
principal.
That trigger does produce the prompt that you mentioned. However,
making the adjustment that you suggest, even after both "no" and
"Yes" for money to recalculate all subsequent payments.
If the loan payment is listed in the bill schedule, make sure the
split appears as 'calculated'.
It does appear in the bill schedule and the split is "calculated".
When I go to edit the bill series, it says, "Money has updated the
number of remaining payments for this loan. Do you want to use
this new number of payments?" And, of course, the reason that it's
updated the number of payments is that several of the payments have
transferred *all* of the payment to principle and none to interest.
I've answered no - no impact. I've answered yes - no impact.

Any other ideas?
 

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