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Refinanced mortgage, lender paying property tax & insurance from proceeds, how do I record this?

I recently re-filed my mortgage, as part of the process the lender paid the next property tax and insurance from the proceeds. How do I record these payments for tax purposes without impacting my banking balance? This was a one-time payment and not an ongoing escrow payment.

(edited for readability)


  • UKRUKR SuperUser ✭✭✭✭✭
    Did your old mortgage have an escrow account?
    If so, you should also have (or create) an escrow account to go with your new mortgage.
    During the refinancing process, any escrow held by the old mortgage company should have been transferred to the new one. After that, tax and insurance should be recorded in the new escrow register.
  • No, there was no escrow account from the old lender nor is there one with the new lender. However, in refi'ng the new lender pre-paid the upcoming RE taxes and pre-paid my home insurance from the proceeds of the cash that I was taking out. As a result, I cannot account for these payments in Quicken for tax purposes. What I am trying to figure out is how do I add these payments to quicken so that they appear in the Tax Summary without impacting my cash balances.
  • UKRUKR SuperUser ✭✭✭✭✭
    How about you edit the Opening Balance transaction of the new loan account and put these amounts in there as a Split?
    Similar to when I refinanced my mortgage a few years ago ...
    Line 1 transfers the pay off amount of the old loan, zeroing out its balance.
    Lines 2 and 3 are expenses. You could put the tax and insurance categories here and their respective amounts.
    The Transaction Total needs to remain unchanged as the actual new loan's opening balance.
  • Roger MRoger M Member ✭✭✭✭
    @UKR I agree with your method. Additionally, Patricia340 said that she did a cash out refinance, so there should be an additional line item, equal to the amount of cash out, which will add to the loan total.
    Quicken Windows Premier - Subscription **** Windows 10 Home *** Quicken user since 1996
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