How do I pay off a mortgage loan account with a new refinance mortgage loan account?

CliffCliff Member
I'm using Quicken 2017 H&B version R6. I want to payoff my current mortgage loan account in Quicken with my new loan that I will setup in Quicken.

Comments

  • volvogirlvolvogirl SuperUser ✭✭✭✭
    edited June 2017
    Did you get any cash out or add some?  Were there fees?  You need to make a split transaction.

    In the bank or cash account how does this sound?  Say your balance was 97,000 and you refinanced for 100,000 and had to pay 1,800 cash.

    Bank or Cash Account.......... (1,800)
    Split out to:
    New Mortgage.......(100,000)
    Old Mortgage...........97,000
    Misc Fee Accounts.........800
    Interest Expense..........3,000
    Escrow.....................1,000
  • CliffCliff Member
    edited October 2018
    Thank you for the quick response. No cash out just a new loan to payoff and replace old loan (better interest rate). So it sounds like I just setup a new account in Quicken and split it to pay off the old loan? What do I use for the opening balance? Sorry if I sound foolish , I've been using Quicken for over 25 years but this one has me stumped.
  • NotACPANotACPA SuperUser ✭✭✭✭✭
    edited June 2017
    Cliff said:

    Thank you for the quick response. No cash out just a new loan to payoff and replace old loan (better interest rate). So it sounds like I just setup a new account in Quicken and split it to pay off the old loan? What do I use for the opening balance? Sorry if I sound foolish , I've been using Quicken for over 25 years but this one has me stumped.

    The Opening Balance of the new mortgage account would be the total amount of the mortgage itself.

    In volvogirl's example, it shows that you had out-of-pocket expenses of $1,800 ... which may or may not be your situation.  Adjust as needed.

    Also note that some things that you paid (such as any interest charged at closing on the new loan) are tax deductible but other things aren't.  You'll need to go over the closing statement and determine the status of each charge thereon.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • splashersplasher SuperUser ✭✭✭✭✭
    edited July 2018
    Cliff said:

    Thank you for the quick response. No cash out just a new loan to payoff and replace old loan (better interest rate). So it sounds like I just setup a new account in Quicken and split it to pay off the old loan? What do I use for the opening balance? Sorry if I sound foolish , I've been using Quicken for over 25 years but this one has me stumped.

    I would create the new loan (LOAN 2) ignoring the old one for the time being.
    Once created, change the Opening Balance transaction of the new loan to be a transfer from the old loan which pays off the old loan (LOAN).

    Here are four screenshots showing the sequence of events.

    Old loan (LOAN)
    image

    New loan (LOAN 2) before changing category:
    image

    New loan after changing category
    image

    Old loan with system generated transaction because of transfer from new loan
    image
    -splasher  using Q since 1996 -  QW 2015, 2016, 2017 & Subscription  -  Win10
    -Questions? Check out the  Quicken Windows FAQ list

  • CliffCliff Member
    edited June 2017
    Cliff said:

    Thank you for the quick response. No cash out just a new loan to payoff and replace old loan (better interest rate). So it sounds like I just setup a new account in Quicken and split it to pay off the old loan? What do I use for the opening balance? Sorry if I sound foolish , I've been using Quicken for over 25 years but this one has me stumped.

    Thank you for all the information. I was able to do it.
  • BillBill Member
    edited July 2017
    It still wouldn't work for me, and my payoff and loan amount are the same.
  • BillBill Member
    edited October 2018
    actually if I could undelete my old loan I could probably edit and change enough to get by
  • volvogirlvolvogirl SuperUser ✭✭✭✭
    edited July 2017
    Bill said:

    It still wouldn't work for me, and my payoff and loan amount are the same.

    That should be even easier.  Set up the new loan and make the beginning amount a transfer to the old loan to clear it out.  Which is the procedure that splasher said right above.  Why won't that work for you?
  • NotACPANotACPA SuperUser ✭✭✭✭✭
    edited July 2017
    Bill said:

    actually if I could undelete my old loan I could probably edit and change enough to get by

    There is no "undelete" ... BUT if you deleted the account recently, how about restoring from a backup that you created prior to the delete?
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • BillBill Member
    edited July 2017
    Bill said:

    actually if I could undelete my old loan I could probably edit and change enough to get by

    Ok I have the new loan set up but when I go to make a payment it doesn't split the payment into principal and interest?
  • gmalis1gmalis1 Member
    edited July 2017
    Bill said:

    actually if I could undelete my old loan I could probably edit and change enough to get by

    Did you set up the loan to download transactions?  Or have you set up the loan as a manual loan?
  • BillBill Member
    edited July 2017
    How do I set it up to download????
  • gmalis1gmalis1 Member
    edited July 2017
    Bill said:

    How do I set it up to download????

    No...I want you to have it set up as a manual loan.

    Click on the Quicken Mortgage Loan account.

    Make sure Loan Details is selected.  On the right side, do you NOT see the transfer of principal to the Quicken Mortgage Loan account AND the loan interest categories with the monthly amounts and percentages?

    A screenshot would be great here.
  • BillBill Member
    edited October 2018
    I am using Quicken 2009...Mine opens with View Loans at the top  then below I have loan summary, payment schedule, payment graph  to the right is Edit loan, Edit payment, make payment, rate changes
  • NotACPANotACPA SuperUser ✭✭✭✭✭
    edited July 2017
    Bill said:

    I am using Quicken 2009...Mine opens with View Loans at the top  then below I have loan summary, payment schedule, payment graph  to the right is Edit loan, Edit payment, make payment, rate changes

    ALL ability to download into Q2009 ended in 2012.  Your ONLY option is a manual loan ... using the Loan Wizard if that feature existed in 2009 (I can't remember that many versions ago).
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • gmalis1gmalis1 Member
    edited July 2017
    Bill said:

    I am using Quicken 2009...Mine opens with View Loans at the top  then below I have loan summary, payment schedule, payment graph  to the right is Edit loan, Edit payment, make payment, rate changes

    If you don't have too many transactions associated with the loan, I would delete the old loan and account and add a new loan using the Quicken "Loan Wizard".

    Pay special attention when setting this up as to the correct categories for principal (a transfer to the loan account) and the interest (a category).

    At the end of the loan wizard, you should be prompted to create an automatic bill reminder.

    Aside from that, helping you with an 8 year old product is difficult.  I don't remember much of Quicken 2009 at this time. 
  • BillBill Member
    edited July 2017
    I don't see any loan wizard, thanks for trying to help
  • gmalis1gmalis1 Member
    edited July 2017
    Bill said:

    I don't see any loan wizard, thanks for trying to help

    Add account > Loan > at the bottom of the screen "create a manual loan account".

    YMMV, being that this is from Quicken 2009.

    You know, you can always access the Quicken HELP area in the software and search for adding a manual loan.  
  • BillBill Member
    edited July 2017
    ahhhh I will do that  thanks
  • BillBill Member
    edited October 2018
    Ok if I have a mortgage loan to  ABC Bank for lets say $1,000 a month.  I n the checkbook I would write a check for a 1,000 and then split it  one category would be Interest Expense  am I correct?  Then what would I call the other?  the principal?
  • NotACPANotACPA SuperUser ✭✭✭✭✭
    edited July 2017
    Bill said:

    Ok if I have a mortgage loan to  ABC Bank for lets say $1,000 a month.  I n the checkbook I would write a check for a 1,000 and then split it  one category would be Interest Expense  am I correct?  Then what would I call the other?  the principal?

    The "other" would be a transfer to the Loan account itself ... to reduce the principal amount/balance.

    And, if you have any other amounts included in your payment, they would probably be a transfer to an Escrow (asset type) account that you created.
    THEN, payments such as your Real Estate Tax, insurance, etc would be paid from the Escrow account.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • BillBill Member
    edited July 2017
    No all I have is Principal and interest,  So I pay ABC Bank  (that would be the principal) and then Interest expense would cover the  expense, right?
  • volvogirlvolvogirl SuperUser ✭✭✭✭
    edited July 2017
    Bill said:

    No all I have is Principal and interest,  So I pay ABC Bank  (that would be the principal) and then Interest expense would cover the  expense, right?

    Did you set up your mortgage as an account in Quicken? When you pay the mortgage payment you write a check from your checking account for example Wells Fargo. So your checking transaction would be a split


    WF check #1001 Mortgage payment -1,000

    Split to:

    Mortgage Acct 800

    Interest Exp 200
  • BillBill Member
    edited July 2017
    yes thank you very much
  • gmalis1gmalis1 Member
    edited July 2017
    Bill said:

    No all I have is Principal and interest,  So I pay ABC Bank  (that would be the principal) and then Interest expense would cover the  expense, right?

    Note that the "Mortgage Acct" for $800 is a TRANSFER ACCOUNT.

    You designate transfer accounts in Quicken by enclosing the name of the account in square brackets.

    So the split lines would actually be:

    [Mortgage Acct] $800
    Interest Exp       $200
  • BillBill Member
    edited July 2017
    Bill said:

    No all I have is Principal and interest,  So I pay ABC Bank  (that would be the principal) and then Interest expense would cover the  expense, right?

    thank you
Sign In or Register to comment.