Track mortgage budget that is on separate account

Hello all,

We have separate account that mortgage company automatically takes money every month out of. From every paycheck we transfer money to that account so it has enough to cover $1,500 payment. How do I include that into my monthly budget since there are multiple transfers from checking to that separate account?

Thanks!

Best Answer

Answers

  • Valderi
    Valderi Member ✭✭✭✭
    Making transfers between accounts is not spending money...
    You will choose a category for your budget only with the last transaction for your bank.
  • JohnyBeGood
    JohnyBeGood Member ✭✭
    Thanks for the reply!
    If I understood you correctly, I would need to wait for payment to be cleared and then choose category ie. mortgage for that specific transaction?
  • Bob_L
    Bob_L SuperUser ✭✭✭✭✭
    edited January 2020
    Actually you can budget transfers if you want to do that.  Check out the budget categories link on the budget page and you will see them there. In your case, select transfers out and then pick that mortgage holding account as the “To account”.
    Quicken Premier Subscription, Windows 10 Home
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Why isn't that "separate account" included in your budget ... since it's the account that holds the mortgage expense?
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • JohnyBeGood
    JohnyBeGood Member ✭✭
    Thanks guys for the replies! I'm still new to this and trying to understand....
    This is how I have it setup:
  • JohnyBeGood
    JohnyBeGood Member ✭✭
    And on the budget tab:
  • JohnyBeGood
    JohnyBeGood Member ✭✭
    Am I missing something?
  • Bob_L
    Bob_L SuperUser ✭✭✭✭✭
    edited January 2020
    Are the “transfers” you make each month to the bank or to a different bank account from which the mortgage payments are taken?  If the later, is that bank account included in Quicken?
     When posting images, please use the icon that looks like mountains.



    Quicken Premier Subscription, Windows 10 Home
  • JohnyBeGood
    JohnyBeGood Member ✭✭
    Transfers are made from checking to a same bank just different account from which the mortgage payments are taken out of.
  • Bob_L
    Bob_L SuperUser ✭✭✭✭✭
    Ok, is the other account set up as a quicken account?  If so, do you want to budget based upon those transfers between the accounts rather than the actual withdrawals from the other account?
    Quicken Premier Subscription, Windows 10 Home
  • JohnyBeGood
    JohnyBeGood Member ✭✭
    Both checking and other account are in Quicken. What is the "most common way" to budget in this situation?
  • JohnyBeGood
    JohnyBeGood Member ✭✭
    Ok, sounds good. Thanks!
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Am I missing something?

    What your graphics show is you making the Principal payment on the mortgage.
    Where/how are you making the Interest payment and any Escrow payment?
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • JohnyBeGood
    JohnyBeGood Member ✭✭
    > @NotACPA said:
    > (Quote)
    > What your graphics show is you making the Principal payment on the mortgage.Where/how are you making the Interest payment and any Escrow payment?

    $1,500 includes Principal, interest and Escrow payment. Is there any benefit by separating it like its broken down on each statement?
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    I have set up for my mortgage:
    • The Mortgage account itself (a liability),
    • An Escrow account (an asset), and
    • An Interest Expense Category..
    That way I can track the balances of each, and reconcile my Q records to the monthly mortgage statement ... because sometimes banks change practices on how they record payments and send stqtements (mine recently did) and this way I know about those changes.
    ALSO, I can do tax planning using the amount of Mortgage interest that I pay..
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • JohnyBeGood
    JohnyBeGood Member ✭✭
    Got it. Thanks!