Refinance with Cash Out - Old and New Accts

In October we did a refi with cash out to make some improvements on our home. I want to:
1-Close out the old mortgage account (pay off the old account).
2-Establish the new mortgage acct.
3-Set up reminder payments that are entered automatically 14 days before pay date that accurately allocate the payment to principal, interest, and escrow.
4-Make sure cash out proceeds are reflected in my checking account (pretty much already did this when the proceeds were wired in).


  • Quicken_Tyka
    Quicken_Tyka Alumni ✭✭✭✭
    Hello @mdclermont

    Thank you for taking the time to visit the Community to report this issue, although I apologize that you have not received a response.

    If you have not done so already, please take a moment to review the information on loans available here.

    If you are encountering a specific issue with any of these steps please let us know.

    -Quicken Tyka
  • tony
    tony Member ✭✭✭
    edited March 2021
    @Quicken_Tyka I understand the "how to set up a new loan", but I want to know is the best practice for doing the transaction? For Example:
    Do I set up the new loan and show a payment from the new loan to the old loan to establish the balance owed in the new loan?
    Quicken Home, Business, & Rental Property Version: R47.15 Build:
  • Quicken_Tyka
    Quicken_Tyka Alumni ✭✭✭✭
    Hello Tony,

    Thank you for the response and clarification, although I apologize for the confusion.

    The support article here, recommends:
    1. Set up your new loan.
    2. Open the liability account register for the new loan.

      Quicken's Loan Setup has created the opening balance of this liability account as a transfer from the loan.

    3. Select the Opening Balance transaction.
    4. Click Split.
    5. In the Split Transaction dialog:
    • Enter the payoff balance of the old loan as a transfer to the liability account for the old loan. The old loan account should now have a balance of $0.00
    • Enter the mortgage interest you paid when closing out the old loan. Be sure to use the same category for the interest that you used with the old loan.
    • Enter the refinance fee.
    I hope this helps to clarify, please let me know how it goes!

    -Quicken Tyka