Prepaid interest, points and other fees in a mortgage?

pastor_paul

When I set up a Refi Mortgage, I was able to set up transfers to the two loans I was paying off with the mortgage. And, I was able to set up the transfer of additional cash in the mortgage to my checking account. However, I was not able to record the additional fees in the mortgage: Prepaid Interest, Final Interest for the loans I paid off, Points, Appraisal Fee etc. Quicken offers multiple category split lines, and there is a Category field in each split line. However, I entered my Mortgage Interest Category in the category field several times. It seems to do the math properly, but after I saved the transaction and opened it again, Q unilaterally changed the category from Mortgage Interest to Uncategorized. And, I can't edit the transfer transaction in the loans I paid off.

How can I enter Points and Other Fees into the Mortgage record?

Tom Young

I'm not really following along with you here.  The generalized accounting entry for your situation as I understand it is along the lines of:

Debit (decrease) Old Mortgage #1 Account          $AAA,AAA        (old loan paid off)
Debit (decrease) Old Mortgage #2 Account           $  BB,BBB         (old loan paid off)
Debit (increase) Checking Account                      $  CC,CCC         (cash out)
Debit (increase) Prepaid Interest Account            $   D,DDD         (prepaid interest)
Debit (increase) Interest Mortgage #1 Category   $       EEE          (interest expense for Mortgage #1)
Debit (increase) Interest Mortgage #1 Category   $       FFF          (interest expense for Mortgage #2)
Debit (increase) Points Paid Account                    $  G,GGG          (set up prepaid points)
Debit (increase) Other Loan Costs Category         $  H,HHH          (expense other costs)
Credit (increase) New Mortgage Account              $III,III               (establish new mortgage)

I'm assuming all costs were paid via increasing the principal of the new mortgage, you paid nothing out of pocket.

Since you said you were able to "transfer" the two old loans, I assume you transferred them to the new loan and that you set up the new loan as a manual loan, not a connected loan.

The accounting is straightforward enough and I'd think you should be able to do this "piecemeal" by entering the amounts one at a time in the new loan Account on the origination date, summing up to the $III,III amount.  Of course if you use the Quicken loan wizard to set up the new loan it will make one "opening balance" entry into the new Account, (presumably for the correct $III,III amount), which will double the opening amount of the loan, so you simply delete Quicken's entry.

ADDED: overlooked the "Mac" aspect here.  I believe this would work in the Windows versions but Mac versions may have some different programming.