Best way to set up Mortgage with bi-weekly payment. 1st Interest + Escrow. 2nd Principal + Interest

Options
Broke-Jim
Broke-Jim Member ✭
edited March 2021 in Registers & Transactions (Windows)
I am looking for the best way to set up a mortgage and tax escrow accounts in Quicken with the following payment structure:

30-year
Bi-weekly payment
Payment 1: Property tax escrow + Mortgage interest
Payment 2: Mortgage principal + Mortgage interest

Answers

  • UKR
    UKR SuperUser ✭✭✭✭✭
    Options
    Broke-Jim said:
    I am looking for the best way to set up a mortgage and tax escrow accounts in Quicken with the following payment structure:

    30-year
    Bi-weekly payment
    Payment 1: Property tax escrow + Mortgage interest
    Payment 2: Mortgage principal + Mortgage interest

    Is that how the mortgage company actually records each payment transaction in their mortgage account?
    Or do they take your payments every two weeks, stuff the money into a holding bucket and then, once a month on the monthly due date, if there's enough cash in the bucket, record one standard monthly payment of principal + interest + escrow from the holding account?
    AFAIK, a standard mortgage with monthly, bi-weekly or twice-per-month payments of the same total amount is all that Quicken can do.
    IMHO, if you're interested in paying the mortgage off in less than 30 years, you might be better off with 1 monthly payment which includes a couple hundred dollars of "additional principal". This shortens the duration and, over the entire payment period, will save you a large amount of interest payments which you won't have to make.

Categories