How do I track a refinanced loan in my budget?

I just refinanced my mortgage and transferred the remaining amount from the old one to the new one like the help for that said, but now my budget tells me that I spent $57K this month in the old category. If I drop it from the categories to budget, it messes up my previous months. Am I going to have to start a new budget now?
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  • Tom YoungTom Young SuperUser ✭✭✭✭✭
    "..now my budget tells me that I spent $57K this month in the old category. "
    I expect that what the budget is actually reporting is a that you transferred $57K out of the old Account, and showing it as a form of "expense".  Of course it's not really an expense from an accounting point of view, it's simply the reduction of a liability - more of a "cash flow" item than an actual expense. 
    If you want to continue to show mortgage principal pay down as a form of "expense", then set up the new liability Account as a "Category" in your budget report.  That way the $57K "expense" associated with the old liability Account will be offset by a $57K "income" in the month of the refinance, i.e., there will be no "bottom line" effect.  In the months after the refinance your payments of principal to the new liability Account will continue to show as a form of expense.
  • Yeah, I tried that, but the category for the new account didn't show the $57K as income, I'm guessing because it was an "opening balance" transaction. What does seem to have worked (I kept trying different things after I asked) is unchecking both accounts in the "select accounts..." dialogue box. But thanks for your help!
  • Tom YoungTom Young SuperUser ✭✭✭✭✭
    A straight transfer from one Account to another Account should show up as an "expense" for the "from" Account and and an "income" for the "to" Account, if that's what you want.  The "select accounts..." dialog allows you to select the Accounts that "feed" the report.  The "select categories to budget..." dialog allows you to select what line items show up in the report itself as "income" or "expense", (or "transfers" reported as income or expense).  You want that "to" Account to be selected as a Category to have the offsetting "income" show up.
  • Rob WudRob Wud Member
    Yeah, I tried that, but the category for the new account didn't show the $57K as income, I'm guessing because it was an "opening balance" transaction. What does seem to have worked (I kept trying different things after I asked) is unchecking both accounts in the "select accounts..." dialogue box. But thanks for your help!
    I was seeing exactly the same thing. Spent a few days polishing a budget then added this transfer to my new mrtgage and wham! messed everything up.  Not intuitive but absolutely fixes the issue I have been chasing for three days.  Thanks.
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