Cannot setup Refinance and pay off old loan and cashout

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I set up a new home loan, linked it to my asset, and try to follow the steps here , https://community.quicken.com/discussion/7874738/how-to-setup-a-mortgage-refinance.

When I am done with those step, I have my new loan with the correct balance x, my old loan is unchanged and I still owe the complete balance Y and the amount I try to add to my Checking is no where to be found. I set these items as transfers in the Split window but nothing is happening. If I change the signs on these splits, I zero out the new loan, I double my old loan and I subtract the cashout from my checking account. I know these splits are set up, but I cannot get the reverse to happen, pay my old load, add cashout to Checking.

Best Answer

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
    edited August 2021 Answer ✓
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    Hi @Chuckmcgu .  Sometimes pictures can be worth a thousand words.  I suggest you try mirroring my refinance test shown below.
    1)  MORTGAGE AND CHECKING ACCOUNT BALANCES PRIOR TO REFINANCE:
    2)  REFINANCE MORTGAGE SET UP BUT NO TRANSACTION ADJUSTMENTS HAVE BEEN MADE:
    3)  CLICK ON THE CATEGORY DROP-DOWN CIRCLED IN RED IN THE PICTURE ABOVE AND THEN CLICK ON "SPLIT" TO SEE THE CATEGORY PRIOR TO THE SPLITS BEING MODIFIED:
    4)  SET UP THE CATEGORY SPLITS:
    MODIFY THE 1ST LINE SPLIT TO SHOW THE TRANSFER TO THE ORIGINAL MORTGAGE AND MODIFY THE $ AMOUNT TO SHOW THE BALANCE OF THE ORIGINAL MORTGAGE THAT IS TO BE PAID OFF...note the original mortgage account name is inside brackets. 
    ADD THE 2ND LINE SPLIT TRANSFER CATEGORY OF YOUR CHECKING ACCOUNT (again, the checking account name is in brackets) AND ENSURE THE $ AMOUNT IS THE AMOUNT TO BE TRANSFERRED TO THE CHECKING ACCOUNT. 
    THE TOTAL AMOUNT OF THESE SPLITS IS TO EQUAL THE TOTAL AMOUNT OF THE NEW MORTGAGE.
    CLICK "OK" AND THEN BE SURE TO SAVE THE EDITED TRANSACTION.

    5)  VIEW OF THE ACCOUNTS AFTER THE MORTGAGE REFINANCE IS COMPLETED.  Note that the Original Mortgage balance is now $0.  Note that the Checking account balance has been increased to $37,263.26.  Note that the New Mortgage balance remains $230,000.
    5)  CHECKING ACCOUNT AND ORIGINAL MORTGAGE TRANSFER TRANSACTIONS FROM THE NEW MORTGAGE:
    Any questions?

    Quicken Classic Premier (US) Subscription: R55.26 on Windows 11

Answers

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
    edited August 2021 Answer ✓
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    Hi @Chuckmcgu .  Sometimes pictures can be worth a thousand words.  I suggest you try mirroring my refinance test shown below.
    1)  MORTGAGE AND CHECKING ACCOUNT BALANCES PRIOR TO REFINANCE:
    2)  REFINANCE MORTGAGE SET UP BUT NO TRANSACTION ADJUSTMENTS HAVE BEEN MADE:
    3)  CLICK ON THE CATEGORY DROP-DOWN CIRCLED IN RED IN THE PICTURE ABOVE AND THEN CLICK ON "SPLIT" TO SEE THE CATEGORY PRIOR TO THE SPLITS BEING MODIFIED:
    4)  SET UP THE CATEGORY SPLITS:
    MODIFY THE 1ST LINE SPLIT TO SHOW THE TRANSFER TO THE ORIGINAL MORTGAGE AND MODIFY THE $ AMOUNT TO SHOW THE BALANCE OF THE ORIGINAL MORTGAGE THAT IS TO BE PAID OFF...note the original mortgage account name is inside brackets. 
    ADD THE 2ND LINE SPLIT TRANSFER CATEGORY OF YOUR CHECKING ACCOUNT (again, the checking account name is in brackets) AND ENSURE THE $ AMOUNT IS THE AMOUNT TO BE TRANSFERRED TO THE CHECKING ACCOUNT. 
    THE TOTAL AMOUNT OF THESE SPLITS IS TO EQUAL THE TOTAL AMOUNT OF THE NEW MORTGAGE.
    CLICK "OK" AND THEN BE SURE TO SAVE THE EDITED TRANSACTION.

    5)  VIEW OF THE ACCOUNTS AFTER THE MORTGAGE REFINANCE IS COMPLETED.  Note that the Original Mortgage balance is now $0.  Note that the Checking account balance has been increased to $37,263.26.  Note that the New Mortgage balance remains $230,000.
    5)  CHECKING ACCOUNT AND ORIGINAL MORTGAGE TRANSFER TRANSACTIONS FROM THE NEW MORTGAGE:
    Any questions?

    Quicken Classic Premier (US) Subscription: R55.26 on Windows 11

  • Chuckmcgu
    Chuckmcgu Member
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    Well, I am not sure what is different from what I did last night, but following your steps did work. Thank you for taking the time to answer me and provide this helpful tutorial. Best Regards
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
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    You are welcome.  I am glad that my post was helpful.

    Quicken Classic Premier (US) Subscription: R55.26 on Windows 11

  • rehakim
    rehakim Member ✭✭
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    i understand the concepts behind the example you gave, but i can't get started because there is no schedule of transactions shown on the payment details page. is there a setting i need to change to make the transaction list visible?
  • Sherlock
    Sherlock Member ✭✭✭✭
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    Robert said:
    i understand the concepts behind the example you gave, but i can't get started because there is no schedule of transactions shown on the payment details page. is there a setting i need to change to make the transaction list visible?
    If you haven'y already, you may want to review: FAQ: How do I convert a loan account that automatically downloads transactions, to a manual entry/sc
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
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    @Robert - As a point of clarification: The transactions register for loan accounts is not available when they are set up for download from the lender.  Since you are not able to see the register, it is assumed your loan is set up for download from the lender.  You will then need to convert the loan to a manual account in order to see and access the register.

    Quicken Classic Premier (US) Subscription: R55.26 on Windows 11

  • David E Sands
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    It should be noted that if you set up your new mortgage prior to its origination date, say you set it up on 9/29/2021 and it originates on 10/01/2021, and you followed all of the steps in the above, the balances on the two loans will not change until the loan origination date. Other than that the above is completely correct.
  • UKR
    UKR SuperUser ✭✭✭✭✭
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    @Boatnmaniac ,
    thank you for contributing this excellent description of the process, including all the images.
    The Community Moderators should take this and turn it into a stand-alone FAQ or Help page and/or improve any existing documentation pages.
    I would recommend only one change to the process:
    Rename the "Opening Balance" transaction to a more meaningful Payee Name. You now end up with a 2nd "Opening Balance" transaction in your checking account ... which could be confusing. How about naming it something like "Mortgage Refinance" or "Opening Balance (Mortgage Refi)" to make it really clear in all accounts what this transaction is all about.
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
    edited September 2021
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    UKR said:
    @Boatnmaniac ,
    thank you for contributing this excellent description of the process, including all the images.
    The Community Moderators should take this and turn it into a stand-alone FAQ or Help page and/or improve any existing documentation pages.
    I would recommend only one change to the process:
    Rename the "Opening Balance" transaction to a more meaningful Payee Name. You now end up with a 2nd "Opening Balance" transaction in your checking account ... which could be confusing. How about naming it something like "Mortgage Refinance" or "Opening Balance (Mortgage Refi)" to make it really clear in all accounts what this transaction is all about.
    Thank you for the compliment.  And I do like your suggestion.  I hadn't thought of that before.

    Quicken Classic Premier (US) Subscription: R55.26 on Windows 11