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Modifying Loan Issues - Extra Principal Payment

I have a loan set up in Quicken for my mortgage. I modified the loan payments to adjust for additional principal I will be paying. After I make that adjustment, the future payments don't reduce the projected cash balances. I tried removing the extra principal payment. However, the future cash balance isn't impacted by the loan payments. How do I get this corrected so that future payments show a reduction in projected cash?

Comments

  • UKR
    UKR SuperUser ✭✭✭✭✭
    Can you show us what the category splits for this payment look like in your checking account?
    Here's an example of a transaction that worked correctly:
    Of course (or should I say, unfortunately) that only works if the loan is NOT connected to the mortgage company for downloading data.

  • Jerry T
    Jerry T Member
    The split is exactly as you laid out.
    Original principal - going against loan
    Mortgage interest - interest from loan
    Additional principal - going against loan principal

    It is not linked to mortgage company

    This used to work perfectly with my prior mortgage. When I refinanced and set up the new loan (mid-2020), this functionality got lost.
  • Jerry T
    Jerry T Member
    UKR, do you have any suggestions?
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    @jerry t, just double checking. In your graphic, all 3 split lines have POSITIVE numbers associated with them.  And the 3 sum to the total removed from your banking account?
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Also, try clicking on that 3rd line in the split, the Addtl Mortgage, and then clicking CTRL-X to see where the money is going.
    Also note that 2 transfers into the same account will usually get combined into a single transaction in the receiving account (your mortgage).
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Jerry T
    Jerry T Member
    NotACPA, the split is correct. It does reduce the bank balance once it is recorded. However, it doesn't show a reduction in future cash balance on future mortgage payments. I am viewing the Calendar that shows all upcoming bills and income. The only item that doesn't reduce projected cash balances is the mortgage payment. In the prior mortgage, this worked properly. When I established this mortgage, I replicated it identically. When it calculated the anticipated payment, initially, it did reduce the projected cash on upcoming mortgage payments Once I increased the mortgage payment for additional principal, it no longer showed the upcoming payments reducing projected cash.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited December 2020
    Trying to duplicate your situation I created a test file and added a loan Account and a loan with an initial date of 12/1/20, an initial loan amount of $100,000, a 30 year amortization and an interest rate of 3%.  When I got to the "split" part of the loan setup I specified an additional principle payment of $500, and told Quicken to post payments into the checking Account and loan Account 180 days in advance. 
    The resulting loan projection certainly looks to be taking into account the specified extra principal payment as the loan has a projected payoff date of 7/1/31, a term considerably shorter than 30 years.
    It does seem to be working.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    "the split is correct. It does reduce the bank balance once it is recorded. "
    That isn't what I asked.  Please re-read my prior post and try again.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Jerry T
    Jerry T Member
    NotACPA, Thanks for the comments, but I have already looked at how it is coded. CTRL X deletes the coding. The money is going against the correct mortgage loan and the correct bank account. The third line is handled correctly. It is going against the mortgage loan. The issue isn't coding to the correct account. The issue is how it impact forecasted cash in the calendar. See attached. The payment in February 1st does not reduce the expected cash balance. It remains at zero before and after the payment. It should reduce the projected bank balance.
  • Jerry T
    Jerry T Member
    Tom Young, How does your test loan impact the projected cash calendar screen? I am not worried about the loan amortization as I know it reduces the actual number of loan payments. See attached for an example of the issue.

    When I created the loan, it was properly reflected in the cash calendar screen. However, when it was changed to include additional principal, it no longer impact projected cash calendar screen. If I remove the additional principal, it still doesn't show as a reduction in cash.

    See attached that shows zero balance before and after the payment.

    Thanks
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    I clearly was not following along with you here.  I've never used that particular calendar but finally found it and it is working "as designed."  Note the decrease between the month end and the 2nd of the month.

  • Jerry T
    Jerry T Member
    Tom Young, Is it reducing the calendar bank balance after it is recorded or as it is a bill (future payment)? For me, it only reduces the cash balance once it is recorded. I utilize this screen as it is one easy view for looking at all future payments/bills and income/paychecks.

    Prior to setting up this new mortgage, it worked exactly as I described. Attached is an example of that. The future Frontier bill (101.00) reduces the projected cash balance (2/17). However, the future mortgage payment does not reduce the projected cash balance. All other projected/future bills and income correctly impact the projected bank balance except this mortgage payment.

    Thanks in advance for your thoughts.
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