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how do I set up a loan with a balloon payment option? Quicken years ago had a box to check to do it

Melinda Clegg Stone

Years ago Quicken had a box to check for a balloon payment when you set up a new loan. I can't find that option anymore. How do I do this now?

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Melinda Clegg Stone

Years ago a Quicken version had a balloon payment option when setting up a new loan. I don't see this in the newest version. Does anyone know where the option exists or how to track a balloon payment?

Quicken Sarah

Hello @Melinda Clegg Stone

Thank you for taking the time to share your question with the Community, although I apologize that you have not yet received a response.

If you are still in need of assistance with setting up a loan with a balloon payment, please review the information available at https://www.quicken.com/support/how-set-loan and let us know if this helps or if there are any questions/concerns.

Thank you,

Sarah

mshiggins

From C. D. Bales:

I do not believe there was ever a "box" to check to create an interest only loan - but I know that no such box was ever necessary.

See:

https://community.quicken.com/discussion/7158293/faq-how-do-you-set-up-an-interest-only-loan

NotACPA

@mshiggins, what does an "interest only loan" have to do with the OP's question about a balloon payment at the end of a loan?.

And I also seem to recall that there was a "balloon payment" option previously

mshiggins

From C. D. Bales:
" ... what does an "interest only loan" have to do with the OP's question about a balloon payment at the end of a loan?"

If you think about it, an interest only loan doesn't permit the borrower to avoid paying back the principal. It just lets the borrower pay only interest until the end of the loan term ... at which point all the principal must be repaid ... in a balloon payment.

mshiggins

From C. D. Bales:
Previously I said, "I do not believe there was ever a "box" to check to create an interest only loan ....".

I apologize; my research was not thorough enough. Yes, as late as Q2012, there was a box to check to get a balloon payment when you created a loan. That box was gone by Q2014 (and probably by Q2013).

The FAQ I linked to should give you an interest only loan with a balloon payment at the end.

NotACPA

There's a significant difference between an Interest Only loan and a loan with a balloon payment at the end.

An Interest only loan doesn't include any payments of principal, until the very end of the loan when the principal is all paid back at once.

A Balloon loan has amortized payments (that MIGHT include a full amortization payment), but not for the full term of the loan. For example, a 25 year loan with payments amortized over 30 years would have a Balloon payment at the end to repay the remaining principal. BUT NOTE, it still has principal payments throughout the 25 years.

mshiggins

From C. D. Bales:
"There's a significant difference between an Interest Only loan and a loan with a balloon payment at the end".

A distinction with no meaning to my post.

An interest only loan has a balloon payment at the end. Period.

I never said there were no other loan types that had a balloon payment at the end: I provided a method to create a loan with a balloon payment ... without needing a "balloon payment" option in Quicken.

And the original poster never said the loan was not an interest-only loan.

The question for you to answer now is: if a user has a loan with a balloon payment that is not an interest only loan, how does the user create such a loan in Quicken?

If you have an answer to that question, you should already have posted it.

Regardless: I can't find any legitimate reason for your comments to my posts.

NotACPA

C. D. Bales,

Quite simply, while an Interest only loan does have a principal only payment at the end, the banking industry calls that an Interest only loan ... NOT a "loan with a balloon payment"

OR, are you unable to understand that difference. A "balloon note" is amortized for a period longer than the maturity date of the loan.

AND, you're making assumptions right and left about the OP's intentions, which the OP has never clarified.

Lastly, your original response was JUST PLAIN WRONG! Acknowledge it.

I can't find any legitimate reason for you to weigh in on banking matters, about which you're simply ignorant.

mshiggins

From C. D. Bales:
" ... you're making assumptions right and left about the OP's intentions, which the OP has never clarified".

I made no assumptions whatsoever about the op's intentions. I stated the fact that the op did not rule out interest-only loans. Had the op posted anything that ruled out an interest-only loan, I would not have provided the link to set one up.

"I can't find any legitimate reason for you to weigh in on banking matters ...".

I'm not "weighing in on banking matters": I am weighing in on creating a loan with a balloon payment in Quicken. My "original response" does exactly that (*).

I'm still waiting for you to provide a way to produce a non-interest-only loan with a balloon payment in the current versions of Quicken, instead of attacking me.

At the end of the day, perhaps this discussion should become an "idea" to have Quicken restore the old option to create a loan with a "balloon payment". Whether that can happen will likely depend at least partly on why the option was removed in the first place.

[ (*) Here is the Q2012 Help for the balloon payment option:

"In some balloon payment loans, each payment covers only the accrued interest (without affecting the principal), and the original loan amount is due at the end of the repayment period. This is a nonamortized, or interest-only, loan. If you have an interest-only loan: Tell Quicken here that you have a balloon payment. In the next two pages of the Loan Setup wizard, enter the same period for original length and amortized length. Enter the payment amount when you're prompted for it."

Note that in Quicken, an interest-only loan is indeed a "balloon payment loan".]