Setting up a Home Loan


H

hapster

How do you set up your scheduled repeating transaction and link it to a
mortgage? I've got my home loan set up as a loan and a repeating electronic
transaction, but can't link it up to the loan I refinanced back in May. I
want it to automatically categorize the principal and interest, but all the
payments that started back in June deduct the exact full amount of the
entire monthly payment from the loan balance instead of categorizing
separately principal and interest, thus "paying off" the loan balance amount
"too early." I hope this makes sense....
 
J

John Pollard

hapster said:
How do you set up your scheduled repeating transaction and link it
to a mortgage?
I've got my home loan set up as a loan and a
repeating electronic transaction,
This is your problem.

all the payments that started back
in June deduct the exact full amount of the entire monthly payment
from the loan balance instead of categorizing separately principal
and interest, thus "paying off" the loan balance amount "too
<snip>

There is a bug in recent versions of Q which incorrectly assigns the
entire loan payment amount to principal for online repeating payments.

I do not use online bill pay, so I am not certain of the machinery,
but I think there are a couple of approaches you can take; though any
approach should end with a Quicken scheduled payment that posts the
loan payment (rather than an online repeating payment doing the
posting).

Assuming you change your payment transaction to be a Quicken scheduled
payment that automatically is posted to your register each month, if
the online payment is entering your register as a downloaded
transaction, if it matches, accept it or if it does not match, you
could just delete it. If this is not feasible, you may have to
disable the online repeating transaction and use your Quicken
scheduled transaction to remind you to trigger an online payment.

Another approach relys on the fact that some lenders will do their own
scheduled transaction and take your monthly loan payment from your
bank account by EFT each month (I have such an arrangement). In this
case, you do not need to remember to do anything, and when the
transaction downloads each month, it should match your Quicken
scheduled transaction (which you scheduled to automatically update
your register each month on the due date) and the correct split in the
matched transaction will be the split that is kept by Quicken.
 
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K

kbq71

First, let me say that I've spent hours trying to resolve this issue
myself and can't believe that Intuit hasn't fixed this (don't get me
started on those guys). I just discovered a workaround that allows
you to continue paying your loan w/ a repeating online payment:



1 Set up a new checking account in quicken w/ a zero balance.
Call it, say, "Dummy Account"

2 Change (you may have to delete and re-enter) your current
repeating online loan payment so that the category is "Dummy Account."
This will cause your payment to be processed as usual, but Quicken
will think that you've transferred the money into your Dummy Account

3 Go to your loan setup, and edit your payment (actions >
manage my loans > edit payment) and set up a scheduled transaction
(not online, just payment) to automatically enter on the same day as
your repeating online payment is paid. This returns the balance in
your "Dummy Account" to zero, "transferring" the payment out and
allocating it to interest/principal.

4 Quicken should correctly allocate principal and interest out
of this payment.



I know it's kind of a hassle, but I prefer this to the other
alternatives.
 

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