Does anyone know how to set up an "Interest Only" mortgage account?

When setting up a new mortgage account, the application generates a monthly principal payment. I only pay interest on this loan. The principal remains the same, so the monthly principal payment is zero. I just don't see how to do this. :-(

Answers

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    So you're just making a monthly interest payment, the same every month, without paying down any of the balance? 

    For the payment, I would just create a scheduled transaction in your checking account for the amount of the monthly payment, using a category for Interest Paid.

    And that may be all you need to do!

    If you want to see the loan amount which you will eventually need to repay reflected in your Net Worth, though, you could create a manual Liability account. The opening balance would be the amount of the loan. This liability doesn't change at all, so you have no transactions here until you repay the loan.

    If there's more to it than this, please post back with more details.
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