How to record loan payoff
Hi, We have refinanced the house with a cash back option. Not sure if it is actually a Home Equity, because the interest rate was lower than the original loan and we do not have to pay PMI. The "lender" paid off the current mortgage, along with other loans (car, credit cards, medical bills) and we also got a lump sum "pay out" to cover home renovations and education costs for my daughter. The only way I was tracking the original mortgage was with a regular category named "mortgage". I never set up the original as a "mortgage loan". I am confused about how to set up this second loan and how to record the pay off of the other loans. I still need to have them active for tax reasons.