Loans, how to add a bullet loan (or best simulate one)

mindpower

I'm under the impression that it is not possible to add a bullet loan in Quicken. (a loan with no principal payment, monthly payments include interest only, there is a balloon payment for the principal at the end of the loan).

Is this correct?
Is there a workaround or a way to simulate a bullet loan?

Jeff Bowman

Hi Mindpower,

Easiest would seem to be create a liability account for the total amount of the loan principal, and enter payments (offset to interest expense) paid to the lendor. even though you're not paying principal, you might include (as a split line) the original "bullet loan" liability account (with zero dollars) as a tracking method for the payments for that loan. Memorize and schedule the payment to avoid missing payments. You could also record "post-date" a "To Print" check for when the balloon is due -- posted dated, it wont affect current financials, but as you get closer to the due date, the balloon is not as likely to be a shock.

Hope that helps....

Jeff Bowman

Hi Mindpower,

Easiest would seem to be create a liability account for the total amount of the loan principal, and enter payments (offset to interest expense) paid to the lendor. even though you're not paying principal, you might include (as a split line) the original "bullet loan" liability account (with zero dollars) as a tracking method for the payments for that loan. Memorize and schedule the payment to avoid missing payments. You could also record "post-date" a "To Print" check for when the balloon is due -- posted dated, it wont affect current financials, but as you get closer to the due date, the balloon is not as likely to be a shock.

Hope that helps....