Regarding Mortgage that I own (Q Mac)

dusty3d

I hold a mortgage and receive principal, interest & real estate tax escrow. How do I set this up?

jacobs

Just to be clear, are you saying that you are the lender, right? That is, you had a property you sold to someone else who is paying you over time? If so, you can do this in Quicken Mac, although there's no automated 'wizard' like there is for a traditional mortgage loan where you are the buyer.

You will need to use any online website calculator to print out a loan amortization schedule based on the amount and duration of the loan. You would create an asset account in for the loan amount (you own the loan, so it's an asset) and a liability account for the escrow account (the buyer is paying you money to go towards expenses, so it's money you owe). For payments you receive, you'd create a transaction to deposit the amount received into your checking account, with three spit lines:

1. Interest income
2. Transfer to loan account (principal)
3. Transfer to escrow account

So let's say you receive $1,000 per month, of which $150 is escrow for real estate taxes and/or insurance. The amortization schedule will show the split between interest and principal for each month; let's say this month is $400 in interest and $450 in principal. Your transaction would be a $1,000 deposit, and the splits would be $400 to interest income, $450 transferred to the loan account, and $150 transferred to the escrow account. This reduces the balance of the loan account, increases the balance of the escrow account, and records the interest income you earned.

Assuming these are regular monthly payments, you can then make that transaction a scheduled transaction, so it will pop up in your account every month. When you get paid, you click on gray scheduled transaction in your register and click the Deposited button at the bottom of the screen. Then double click the transaction to adjust the date to the date it was received, and adjust the split between principal and interest according to the amortization schedule. It may seem annoying to have to manually adjust that split each month, but once you're set up with the recurring transaction, it will take you less than a minute each month, so it's not really a big manual chore.

When you pay the insurance and/or real estate taxes, those payments out of your checking account would be categorized as transfers to the escrow account, which reduces the balance of the escrow account.

If you receive any extra payments on the principal, record them as simple transfers to the loan account. Then you'll need to re-run the amortization schedule for the remaining balance and duration of the loan, as the extra payment changes the split between interest and principal going forward.

If you need to change the escrow amount -- because, say, real estate taxes went up -- that would increase the amount of the payment (perhaps from $1,000 to $1,050), and the added amount would be added to the split for escrow. You'd do this by double clicking on the next scheduled transaction in your register, then clicking the Edit All Instances link in the blue pop-up under the transaction, and edit the total amount and the escrow amount. The updated transaction will be used for all future months. 

There's a lot of information here, so if any of this doesn't make sense, post back.