How can I update my mortgage account from downloaded transaction in my checking account

Mortgage account not updating from downloaded checking account.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    A download from your bank contains only the information that bank knows about, like payee, amount, and check number.  The bank has no way of knowing how you've Categorized that amount so you're not going to get principal amount, interest amount and escrow amount through the download, you're simply going to receive the total payment amount, and nothing else. Even if your bank is your mortgage lender, you're still not going to get that split in the checking Account download
    To get information about mortgage payments out of checking properly split to the relevant Categories and Account (the mortgage loan) you need to enter the payment correctly in the checking Account.  You could do this manually before the payment is downloaded, (at which point the download will "match" your manual entry), edit the downloaded information after the fact, or set up the mortgage loan Account using Quicken's loan wizard and, during the set up, telling Quicken to enter the payment (with the correct pay date) "X" number of days before the payment is due.
  • chuckf201
    chuckf201 Member
    Unfortunately, my downloaded mortgage payment transaction from Wells Fargo does not update my mortgage-debt account called BB&T mortgage. validate file process was clean with no errors. I have another loan from a finance company and I can download transactions directly from them without a problem.
    I don't know what else to do.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    "Unfortunately, my downloaded mortgage payment transaction from Wells Fargo does not update my mortgage-debt account called BB&T mortgage."
    As I said, your bank has no idea how to spit that payment.  WFB has no information in their possession that would allow them to do that.  You are only going to get the dollar amount of the entire payment, period. 
    "I have another loan from a finance company and I can download transactions directly from them..."
    This statement is not really clear in the context of your original question - "How can I update my mortgage account from downloaded transaction in my checking account.  This statement says to me that you're getting the information into the Quicken loan Account directly from the loan servicer, i.e., this information isn't being "fed" to the loan Account based on an entry that show up in the checking Account.
    In some instances you can connect a loan directly to a loan servicer and the loan servicer then feeds principal reductions into the loan Account, but that's all they do.  They don't download interest amounts or escrow amounts or anything else to your Quicken file.  That other information still has to come out of the checking Account and it will do that only because you used Quicken's loan wizard to set up the loan in the first place.
    If you can't connect the BB&T loan Account to the loan's servicer then the only ways to get the proper split of the payment, a part of that split which reduces the principal amount of the loan in your loan Account, was spelled out in my original answer:
    1. Enter the payment manually with correct split amounts
    2. Edit the downloaded payment to correct the account for the payment
    3. Set the loan up using Quicken's loan wizard and Quicken will calculate the splits for you and make the entry in the bank Account.
  • chuckf201
    chuckf201 Member
    Does not work manually. There is no manual transfer of amount using transaction account. I don't expect it to work as part of the download by the transaction is memorized and does not work.
    I have to manually add it to my home mortgage account. There is no linkage.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @chuckf201

    Let me see if I can help you.

    You are paying your mortgage payment from your bank account and for most payments you make from your bank account, you likely post those to expenses you pay by check, like your electric, telephone, etc.  But, for your mortgage its more complicated because the "mortgage payment" you make from your checking account has two parts  - one is the principal portion which reduces the amount you owe and the other part is the interest you pay on the loan.  In Quicken, you need to separately record those amounts.  

    You seem to imply above that when you record the mortgage payment in Quicken, that you DO allocate a part of each payment to mortgage principal and to mortgage interest - do I have that right?  If not. and if you are simply recording the entire amount of the payment to the mortgage account, or to somewhere else, you need to change that, if you want your mortgage balance to correctly update.

    Let me know if you have any followups or need more information.

    Franlx

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  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    When you download the payment in your checking account what is the category or split categories on it?  Or is it being entered as a Transfer to another Account?  Can you post a screen shot of the checking acct transaction?
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited October 10
    "Does not work manually. There is no manual transfer of amount using transaction account. I don't expect it to work as part of the download by the transaction is memorized and does not work.
    I have to manually add it to my home mortgage account. There is no linkage. "
    Please post a screen shot of one of the "does not work manually" transactions from the checking Account in the following format:

    Also, you've never said how you set up this mortgage in the first place.  Did you use Quicken's loan wizard to create the mortgage Account, or simple set up a generic Liability Account?
  • chuckf201
    chuckf201 Member
    Thanks for all your help. I have 2 png's. One: checking account showing transaction 9/8/2021
    two: png of accounts (property and debt section).
  • chuckf201
    chuckf201 Member
    checking register
  • chuckf201
    chuckf201 Member
    transaction come into my wells fargo account but doesn't update anything (principal or interest) in the BB&T property and Debt account.
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    chuckf201 said:
    transaction come into my wells fargo account but doesn't update anything (principal or interest) in the BB&T property and Debt account.
    I suggest you enter your loan payment transaction prior to importing the transaction in the payment register.  For example: open the loan account, press Ctrl + Shift + N an select Enter Loan Payment
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    Is the $830 your mortgage payment?  All it's doing it putting it all to the Home Expense Category.   You need to split it so it goes to Interest Expense and the principal to the BB&T loan account by using square brackets around the loan name like [BB&T..].   Do you know how to make a split transaction?
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    You do not appear to be reading and understanding the answers you've received and you've not been at all responsive to direct questions, leaving them unanswered. 
    You can't rely on "downloads" from your bank to do your accounting for you, you have to take control here.  Your pictures show that entire amount of your payment is being "expensed" as a current period cost, no part of the payment is going to the BB&T Mortgage 4941 Account.   
    Given what you have said I'd guess that your memorized payee list has "BB&T Mortgage 4941" as a payee with that $830 going to the Category "Home expense-Del-Web-Spruce-Creek:(some sub category you haven't included in your picture)."  So each time you download the payment from the bank that memorized payee keeps putting the exact same (wrong) information into the check register. 
    That entry is incorrect as it doesn't transfer some amount of the payment to loan principal and simply "manually" making that entry again, in the exact same fashion, doesn't change anything - the entry is still wrong.
    You, must slice that $830 payment into its components in the exact same fashion as shown in my 10/10/21 post above and if you make that manual entry you will see a reduction in the loan's principal balance.   You might want to start over here and properly set up the loan Account using Quicken's loan wizard so that Quicken can calculate the proper entries and make them for you in the checking Account.
  • chuckf201
    chuckf201 Member
    TO ALL,
    I'm less worried about the split between principal and interest as I'm would expect SOME transfer of information from downloaded checking account and BB&T Mortgage account.
    volvogirl: yes, I can make an split entry.
    I have another debt account that gets automatically reduced when ever a payment is downloaded via my checking account.
    Maybe, the answer is to create a straight debit account and that may solve my problem.
    I appreciate all the help. I've been with Quicken since the 1980's and really enjoy the product.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    HI again @chuckf201"

    So, unfortunately, I don't believe that you are going to be able to directly download the transactions needed to automatically keep the Mortgage Liability account in Quicken up to date, like you apparently do for the other "debt account" you mention above.  So, here's what I'd suggest you should do:

    1) For each mortgage payment that you've made so far - change the "category that you've been posting it to from "Home Expense-Del-Webb-Spruce Creek" category to this category: "BB&T Mortgage 4941".

    2) You'll then need to make manual entries to account for the loan interest that has been paid on this mortgage.  The entry itself will look like this what others have discussed in the above responses.  Depending on how long you've had this mortgage, there are different approaches you can take to limit the number of entries you'll need to enter.  For example, if you've had the mortgage for a few years, you could make one entry in Quicken for each year that will reclassify the interest and principal portions of all payments made in that year.  And for the current year, you could either adjust each payment you've made on a per month basis, or just do a "year-to-date" adjusting entry.

    Once you've completed the above, if you set up a standard monthly "bill & income reminder" that has the split fields for the interest and principal portions allocated as discussed above, so that you'll only need to tweak the allocations to keep both the mortgage liability account and the interest expense category in balance going forward.

    Hope this helps!  Let me know if you have any followups.

    Frankx

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