Mortgage not calculating properly (Q Mac)

Anghara
Anghara Member
Hi,

I am having some trouble getting a mortgage account to set up correctly. I've tried both setting it up from the initial loan and from its current status.

Either way, the wizard is not calculating the principal and interest correctly. They are each off by a couple cents/couple dollars (depending on where in time I tried starting the loan). The total payment is then off as well.

Is there a way to correct this? It's a fixed 4%, 30-year loan, pretty standard.

Thanks for any advice!

Answers

  • UKR
    UKR SuperUser ✭✭✭✭✭
    Are you sure the interest really is 4.00% APR? Or is the bank fudging it and charging just a little more?
    Are you paying in monthly installments or are you making partial payments every 2 weeks?
    Usually, the Quicken loan calculation is spot on for home mortgages with monthly payments.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Due to the complexities of calculating mortgage amortization (and the multiple places in the process where ROUNDING can take place) it's not unusual for there to be a difference of a few pennies in the calculated amount vs the bank's amount.
    That's why you can add an extra PRINCIPAL PAYMENT line to the transaction in your checking account to make this adjustment.
    Everything should be hunky-dory after making that adjustment, if it's needed.

    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited July 2
    Anghara said:

    Is there a way to correct this? It's a fixed 4%, 30-year loan, pretty standard.
    What's the principal amount of the loan ... so that we can test the calculations ourselves?
    And, besides the principal, are there any fees that the lender tacked on at closing, that would make the borrowed amount a bit higher?  OR, is there an escrow component to the loan?

    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Mark1104
    Mark1104 Member ✭✭✭✭
    the monthly payment should be $47.74 per $10,000 of principal.  The APR is NOT the note rate.   the note rate is required to determine the amortization.  APR includes items that are not in the mortgage balance (e.g. points) 
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