# HE Loan setup in Quicken Premier 2016 does not agree with bank

speedlever
Member

I tried to setup a new HE Loan (not HELOC) in QP2016 and the monthly payment does not agree with the bank. I've called the bank about it and they say their calculation agrees with Fannie Mae.

I've Googled financial calculators and the results agree with my numbers, not the bank.

The basic numbers are a HE loan for $65k, 60 months, at 4.15%. The bank payments are $1203.58. All my numbers show the payment to be $1201.48. I cannot find any field in the loan setup for QP2016 that will allow me to come up with that number, ergo, all my numbers are going to be slightly off from the bank numbers.

Any thoughts?

I've Googled financial calculators and the results agree with my numbers, not the bank.

The basic numbers are a HE loan for $65k, 60 months, at 4.15%. The bank payments are $1203.58. All my numbers show the payment to be $1201.48. I cannot find any field in the loan setup for QP2016 that will allow me to come up with that number, ergo, all my numbers are going to be slightly off from the bank numbers.

Any thoughts?

0

## Comments

- Ask the bank if any Closing Costs were added to the $65,000 ... making the actual loan amount larger.
- Ask the bank to explicitly indicate WHERE, in Fannie Mae, such calculations can be found.

Because using BOTH Q's Loan calculator AND ExCel's PMT() function, I also came up with $1,201.48.Now running Quicken Windows Subscription

Retired "Certified Information Systems Auditor"

I sent them screen shots of my data and await their reply.

"Home Equity loans are set

up as 45 days out for the 1st payment from the contract date,

instead of the standard 30 days, like a mortgage. Also the way our system is

set up for equity loans, it is set up on a daily interest calculator. Our

amortization schedule is set for 366 basis unlike first mortgage lending."

I have no idea how to account for this in Quicken. Any ideas?

Recalculating the loan with daily instead of monthly compounding changed the Quicken calc from 1201.48 to 1201.68.

"Daily compounding" isn't the same thing as "Daily Interest", where the interest owed is calculated each day, depending upon the balance at the end of that day. SO, if you make your payment on the 1st of August, the interest due in September will differ from if you paid on 15 August.

The only thing that you can do is enter a "guesstimated" payment/split ... and then correct it when you get the monthly statement.

Now running Quicken Windows Subscription

Retired "Certified Information Systems Auditor"

"The bank payments are $1203.58. All my numbers show the payment to be $1201.48. I cannot find any field in the loan setup for QP2016 that will allow me to come up with that number ....".

It's easy to come up with that number ($1201.58): just key it into the "Monthly payment" box in the "Loan Details" dialog when setting up the loan.

The question is: will the Quicken payment breakdowns of principal and interest equal the lender's breakdowns?

I created a Q2017 loan with your criteria and a $1201.58 monthly payment amount and compared the resulting Quicken loan payment schedule to a loan payment schedule using the same loan criteria that I found here:

https://financial-calculators.com/loa...

Quicken's loan payment schedule matched the loan payment schedule computed at the above web site.

I suggest you get a loan payment schedule from your lender and compare that to Quicken's computation.

[One Caveat: I do not know what the rules are for HE loans. If the rules are basically the same as for traditional mortgage loans (where the principal/interest breakdown follows that in the payment schedule - rather than having the principal/interest breakdown based on the number of days between payments being posted by the lender, as is the case for simple interest loans) then I believe you should be good to go, if your lender's payment schedule matches your Quicken payment schedule.]

Questions? Check out the Quicken Windows FAQ list

I'm not sure where the extra $0.02/payment comes from. It may have something to do with their "366 day" amortization whatever that is. (Please also Google "365/360 amortization".) I suppose somebody might also have mis-copied the last digit of $1,203.56 as an 8. Or they might have done some rounding somewhere.

If you want to match their payment schedule, assume $113.67 instead of $112.40 (an extra $1.27) for the initial 15-days interest and so enter into Quicken a loan for $65,113.67 starting 15 days after the actual start date and you should be pretty close.

Thanks.

has to account for thesomethingfor those 15 days. Call it a finagle factor if you wish...extra interestAt least you now know where the higher payment amount came from and that it is not mysterious or wrong.