How do I handle a refactored loan in Quicken?

lgelbaugh

We recently refactored our loan. Unlike a refinance, when the old loan is paid off and a new loan is created, a refactor keeps the old loan but after making a significant payment (e.g. just sold the previous residence), it recalculates your principal and interest payment to a lower number using your existing loan details (term, interest.) I cannot see how I can do this in Quicken. It allows me to change the additional payment amounts (taxes, insurance, etc.) but doesn't allow me to refactor it. Do I need to close this loan in Quicken and create a new one with the same rate and a different term (e.g. 28 years and 5 month term loan with my current remaining balance)? That seems clunky.

Thanks for any advice!
Larry

splasher

I think the easiest process would be to make the "balloon" payment against the old loan, then create a new loan using a transfer from the old to new as the opening balance of the new loan.  You will still have all of the information for both phases of the loan, just in two accounts.