Mortgage payment not split between principle and interest

donriach

When I enter a monthly mortgage payment (total including interest & principle), mortgage account is credited with entire amount. How do I get Quicken to calculate and split correct amount to principle reduction (mortgage account) and interest expense accounts?

Boatnmaniac

Did you set up your mortgage as an Offline (Manual) Loan account?  If you did, it should have created a Loan Reminder which has a split category breaking out the various parts of the payment...prinicipal, interest, insurance, taxes, etc.  Then every month (or whatever the appropriate payment time period is), enter the reminder which will then be reflected in the mortgage account register and in the checking account register.  The amount that gets allocated to principal and interest will be automatically adjusted by Quicken with each payment.  Then when your bank downloads the payment transaction from your checking account you can let Quicken match it to the entered Loan Reminder or you can manually match it to entered Loan Reminder.

If you have not set up the Offline Loan account, I suggest you do that.  Make sure not to connect the mortgage to the Lender because connected loans do not have account registers and the process mentioned in the previous paragraph will not work.

If you have not already done so, you might want to read the following Help Article:  How do I set up a loan?  I suggest disregarding the Online Loan Account and instead going with the Manual Loan Account.

Boatnmaniac

Did you set up your mortgage as an Offline (Manual) Loan account?  If you did, it should have created a Loan Reminder which has a split category breaking out the various parts of the payment...prinicipal, interest, insurance, taxes, etc.  Then every month (or whatever the appropriate payment time period is), enter the reminder which will then be reflected in the mortgage account register and in the checking account register.  The amount that gets allocated to principal and interest will be automatically adjusted by Quicken with each payment.  Then when your bank downloads the payment transaction from your checking account you can let Quicken match it to the entered Loan Reminder or you can manually match it to entered Loan Reminder.

If you have not set up the Offline Loan account, I suggest you do that.  Make sure not to connect the mortgage to the Lender because connected loans do not have account registers and the process mentioned in the previous paragraph will not work.

If you have not already done so, you might want to read the following Help Article:  How do I set up a loan?  I suggest disregarding the Online Loan Account and instead going with the Manual Loan Account.

donriach

Thanks very much. The off-line loan approach was an easy fix. Only remaining problem is how to zero out the prior mortgage account (I was 15 months into a 30 year mortgage). Now Quicken shows I have two loans but only one property. How do I "transfer" balance of prior erroneous mortgage to the adjusted value of the new loan?

UKR

donriach said:

Thanks very much. The off-line loan approach was an easy fix. Only remaining problem is how to zero out the prior mortgage account (I was 15 months into a 30 year mortgage). Now Quicken shows I have two loans but only one property. How do I "transfer" balance of prior erroneous mortgage to the adjusted value of the new loan?

The new loan register should have been set up with an Opening Balance equal to the "current balance" as of this month's mortgage statement.
To zero out the old loan account's register, just add a transaction which reduces the balance to $0.00, e.g.,

• Payee = Balance Adjustment, Category = [name of old loan register] in brackets,
  Amount = unpaid balance, Memo = see new loan register.

Done correctly, this will zero out the balance and not show any unexpected income expense in any view or reports. Quicken will prompt for "transfer to same account?" which is OK to do so in this case.