Why is interest on a loan payment deducted from the balance of the loan?

emikej
Member ✭
This is the first payment on a new mortgage account I set up. I split the principal & interest in categories, but the balance reflects the full amount of payment.
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Best Answer
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In the split payment, what categories are used for:
- Transfer of principal to the loan (to reduce loan amount)
- Expense of interest
- Any other amounts in the payment (such as escrow)
Q user since DOS version 5
Now running Quicken Windows Subscription, Home & Business
Retired "Certified Information Systems Auditor" & Bank Audit VP0
Answers
-
In the split payment, what categories are used for:
- Transfer of principal to the loan (to reduce loan amount)
- Expense of interest
- Any other amounts in the payment (such as escrow)
Q user since DOS version 5
Now running Quicken Windows Subscription, Home & Business
Retired "Certified Information Systems Auditor" & Bank Audit VP0 -
Thanks. I split the payment and only transferred the principal. All is well.0
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