Recording a re-fi

I re-financed my mortgage and could use some help figuring out the most appropriate way to enter the related transactions. To keep the #s somewhat simple let's assume we have the following:
$200,000 outstanding balance on old loan
$5000 escrow balance for old loan
$200,000 new loan
no escrow set up for new loan

Disbursements at closing were:

FROM PROCEEDS OF NEW LOAN
$5000 to bank fees ($2k), title fees ($2k), pre-pay interest on new loan ($500) and pay month-to-date interest on old loan ($500)
$190,000 to old bank
CASH TO CLOSE FROM CHECKING ACCT
$5000 cash to old bank to close (from checking acct)


Here's my plan to record the transactions in Quicken:
Withdrawal $5000 from my escrow acct Deposit into my mortgage acct. Categorize both as Principal
Categorize the $5000 check to the old bank as principal payment
Split the opening balance/transaction of the new loan into 5 lines, with $190k going to the old acct as Principal payment, $5k being categorized as indicated above ($2k to Bank fees, $2k to Title fees, $500 interest to the old bank and $500 interest to the new bank).

Does this sound right? Does Quicken have any tools to simplify the process or automate? If I didn't cut my interest on the loan by 1.75%, I'm not sure this would be worth the aggravation. ;)

Thanks, in advance.

Best Answer

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    The accounting looks correct.  I don't think Quicken can really do anything for you here except establish the new loan using Quicken loan wizard, and then you'd modify Quicken's Opening balance entry of $200K as you've discussed. 

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    The accounting looks correct.  I don't think Quicken can really do anything for you here except establish the new loan using Quicken loan wizard, and then you'd modify Quicken's Opening balance entry of $200K as you've discussed. 
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