How to log an Interest only payment on a mortgage

I have a re-financed repayment mortgage set up, however there is a gap before the first payment (principal and interest) is due and therefore I have an interest only payment to make. How do I log this interest only payment in Quicken so it doesn't think it is a principal payment?

Best Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Accepted Answer
    In  your checking account, from which you're making that I/O payment, simply use the CATEGORY that you intend to use for all interest on this loan.
    There's no need to use the Mortgage Wizard, at this time, for this payment, as there's no amortization involved.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • UKR
    UKR SuperUser ✭✭✭✭✭
    Accepted Answer
    Create a Split transaction based on either the Scheduled Reminder for your monthly payments (or the Memorized Payee List entry, depending on which you created during mortgage setup), set the payment amount to the amount of interest due.
    The Split will look something like this:
    Set the amount for lines 1, 3 and 4 to 0.00 and set the amount in line 2 to the amount of interest due.

Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Accepted Answer
    In  your checking account, from which you're making that I/O payment, simply use the CATEGORY that you intend to use for all interest on this loan.
    There's no need to use the Mortgage Wizard, at this time, for this payment, as there's no amortization involved.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • UKR
    UKR SuperUser ✭✭✭✭✭
    Accepted Answer
    Create a Split transaction based on either the Scheduled Reminder for your monthly payments (or the Memorized Payee List entry, depending on which you created during mortgage setup), set the payment amount to the amount of interest due.
    The Split will look something like this:
    Set the amount for lines 1, 3 and 4 to 0.00 and set the amount in line 2 to the amount of interest due.
  • FEMP
    FEMP Member
    Thank you for these, however, the amount does not show up on the Mortgate account - should it?
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    FEMP said:
    Thank you for these, however, the amount does not show up on the Mortgate account - should it?

    For an interest only loan, there IS no reduction in the mortgage amount ... until you start making Principal payments also.  At that time you'll need the Mortgage Wizard to calculate the Amortization (Principal and Interest split) of the loan.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
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