HEL with Varying Payment Details

I have an HEL where the payment is always the same amount but the amount applied to principle or interest changes with each payment. I created the loan account in quicken but i cannot edit the entries auto-created by quicken. Thus the interest paid and balance remaining are incorrect. How can I change the transactions?

Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    On a fully amortized loan, the split between Prin & Int IS SUPPOSED to change each month.  Since for each successive payment you have a little bit less principal outstanding and thus you pay a bit less interest on that lesser principal amount.
    SO, let's look a bit deeper into this.
    When you do TOOLS, Account List and click EDIT adjacent to this account, what shows next to "Account Type"?
    Are you downloading from your lender into this account?
    WHY can you not edit the payment?  What precisely happens?  WHERE are you trying to edit the payment ... in your checking account, or where?
    Did you use Q's "Loan Wizard" to set up the payments for this account?
    Also note that for any sort of home loan, it would be most unusual, but not impossible, for this to be a "Daily Interest" loan ... where the amount of interest due on the NEXT payment is partially dependent upon what day of the month your lender received the most recent payment.  This contrasts with a "Monthly Interest" loan, where the complete Prin/Int split (the amortization) can be calculated at the beginning of the loan.
    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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