Track escrow with principal and interest

When setting up a loan the principal and interest are calculated by Quicken. I want to edit the monthly payment to include an escrow amount as well. When I do that Quicken classifies the escrow payment as "Extra principal paid monthly". While the monthly payment total is correct, the loan amortization gets thrown off since Quicken thinks the loan is being paid off early, by 10 years in this case. Is there a way to P&I and escrow in one transaction without Quicken applying the escrow to principal?
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Best Answer

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    Quicken has thrown you a curve ball here.  I'm guessing that you have that escrow amount listed as the third item on the split screen.  That line is "reserved" for additional principal, so Quicken's treating it as such.  Move the escrow to the fourth line of the split.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    Quicken has thrown you a curve ball here.  I'm guessing that you have that escrow amount listed as the third item on the split screen.  That line is "reserved" for additional principal, so Quicken's treating it as such.  Move the escrow to the fourth line of the split.
  • UKR
    UKR SuperUser ✭✭✭✭✭
    edited March 18
    To expand a bit on what @Tom Young said and assuming that your mortgage account is set up as an offline account, not connected to the mortgage company for downloading of account information, you should first set up an Escrow account which mimics the escrow funds held by and disbursed from the mortgage company.
    When changing the mortgage payment transaction make the escrow payment look like a transfer to the Escrow account. Here's an example from one of my test files:
    Access the loan account's Loan Details view and click "edit" at the MONTHLY PAYMENT header (#1), to open the Loan Details dialog.
    Click Edit (#2) to add the escrow amount and the transfer category to appear in the "Other" line.
    The Extra principal line should be 0.00 (unless you want to pay extra principal, too).
    When done editing, the payment details graph should correctly display extra principal or 0.00 in the 3rd line and escrow in the 4th line.
    (Ditto for the scheduled reminder's Split dialog in your checking account)

  • cmcfarling09
    cmcfarling09 Member
    Thanks! It was certainly an ordering issue on the split screen. On the Loan Details screen I was clicking "Edit Loan Reminder" and putting the escrow transfer on line #3. I moved it to line#4 and it worked as expected. Way to go Intuit for making that completely unintuitive!!

    Just to see, I also removed the escrow transfer from the split screen altogether and added it back using the Edit button as noted in the screenshot above by UKR. Doing it that way puts it in the proper order as well.

    BTW, how did you get screen shots into your post? I wanted to do that but there are no controls for adding images.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    "BTW, how did you get screen shots into your post? I wanted to do that but there are no controls for adding images. "
    You need to have more "points" indicated by stars after your ID to be able to post inline images.
    In the meanwhile, you can drag and drop JPG and other image type files into your messages.  PLEASE, however, don't post PDF files.  While they work, they're additional work as they require opening a PDF reader and images can be opened by our browsers.
    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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