quicken 2019 10/1 option ARM IO mortgage accounting setup (Q Mac)

coopster
coopster Member ✭✭
Quicken 2019 Premier for Mac: I'd like to set up my mortgage, which doesn't seem to fit the characteristics offered
10/1 ARM IO
Not seeing a way to select these characteristics
Before setting up quicken, mortgage was being serviced by PHH
but recently reverted to Morgan Stanley (who originated it)
I have tried to set it up under Morgan Stanley Wealth Management, but it never even asks for an account, credentials or Loan #

Best Answer

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    I don't believe Quicken Mac has capabilities for an interest-only loan like that. It currently handles simple fixed-rate loans.

    That said, this doesn't need to be a problem for you.  You can create a liability account for your loan, and create a recurring monthly transaction in your checking account for your loan payment. If you're paying interest only now, then it's simply interest expense. If you have an escrow account, you can create an asset account fr that, and your monthly payment would include a split for the transfer of funds to your escrow account. Once you begin paying down the mortgage, you'll add another split line to the monthly payment transaction for the transfer to your loan account for the principal portion of the payment. Use any free online mortgage calculator to generate an amortization schedule, and every month or every few months, open the mortgage payment transaction and adjust the split between interest and principal. That may sound like a lot of work, but in actuality, it'll take you about 30 seconds a month to manually adjust the split. 
    Quicken Mac Subscription • Quicken user since 1993

Answers

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    I don't believe Quicken Mac has capabilities for an interest-only loan like that. It currently handles simple fixed-rate loans.

    That said, this doesn't need to be a problem for you.  You can create a liability account for your loan, and create a recurring monthly transaction in your checking account for your loan payment. If you're paying interest only now, then it's simply interest expense. If you have an escrow account, you can create an asset account fr that, and your monthly payment would include a split for the transfer of funds to your escrow account. Once you begin paying down the mortgage, you'll add another split line to the monthly payment transaction for the transfer to your loan account for the principal portion of the payment. Use any free online mortgage calculator to generate an amortization schedule, and every month or every few months, open the mortgage payment transaction and adjust the split between interest and principal. That may sound like a lot of work, but in actuality, it'll take you about 30 seconds a month to manually adjust the split. 
    Quicken Mac Subscription • Quicken user since 1993
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