Refinance with Cash Out - Old and New Accts

mdclermont

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

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

@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_Tyka

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