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How to set up Bi-weekly mortgage payments

Read the twice-monthly question... didn't help. My 'payment' is bi-weekly, but it is really not a payment in that the amount ($800) deducted from my bank account is placed in bank escrow account and then on the first of each month the bank deducts the payment amount ($1200) from the escrow account. Thus, over the year there will be 13 payments vs. just 12.

I set up an account to move the bi-weekly funds into a 'local' escrow account but how do I set up the mortgage account to handle the funds from the escrow account?

TIA for any assistance
jdadwilson

Best Answer

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited March 2 Accepted Answer
    Sherlock, thanks for your reply. Yes, I understand the math. The purpose is to pay off a 30 year mortgage in just over 15 years.

    The problem is not with what I can do but what the bank does. The bank withdraws the funds every two weeks and places them into their escrow account. Then on the first of each month, the bank withdraws the funds from the escrow to pay the loan amount and apply the excess to the principle.

    Thus the question, how can I set up Quicken to track the transactions?

    jdadwilson
    As I already suggested, you should use the loan account's payment reminder or memorized payee to withdraw the funds from the local escrow account and you will need to edit the loan payment appropriately for the additional principal.

Answers

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited March 1
    I suggest you use the loan payment reminder or memorized payee to withdraw the funds from the escrow account: open the loan account, press Ctrl + Shift + N, select Enter Loan Payment  

    Note:  Bi-weekly means you'll be making 26 payments to the escrow versus 12 monthly payments to the mortgage each year.

    If you're paying $800 bi-weekly to escrow for a $1200 monthly mortgage, you'll be paying $1600 a month toward the mortgage ($400 extra principle) from the escrow account except when there is a third payment in the month (twice a year) in which case you'll pay $2400 toward the mortgage ($1200 extra principle) from the escrow account.  
  • jdadwilson
    jdadwilson Member
    Sherlock, thanks for your reply. Yes, I understand the math. The purpose is to pay off a 30 year mortgage in just over 15 years.

    The problem is not with what I can do but what the bank does. The bank withdraws the funds every two weeks and places them into their escrow account. Then on the first of each month, the bank withdraws the funds from the escrow to pay the loan amount and apply the excess to the principle.

    Thus the question, how can I set up Quicken to track the transactions?

    jdadwilson
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited March 2 Accepted Answer
    Sherlock, thanks for your reply. Yes, I understand the math. The purpose is to pay off a 30 year mortgage in just over 15 years.

    The problem is not with what I can do but what the bank does. The bank withdraws the funds every two weeks and places them into their escrow account. Then on the first of each month, the bank withdraws the funds from the escrow to pay the loan amount and apply the excess to the principle.

    Thus the question, how can I set up Quicken to track the transactions?

    jdadwilson
    As I already suggested, you should use the loan account's payment reminder or memorized payee to withdraw the funds from the local escrow account and you will need to edit the loan payment appropriately for the additional principal.
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