Connect property to payment

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I'm trying to figure out how to set up a property account so that as each mortgage payment is made the outstanding balance decreases.

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  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
    edited September 2022
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     I suggest:
    1)  To add the Property Account:  Add Account > Other Assets & Liabilities tab > Property > follow the prompts.
    2)  To add the Mortgage Account:  Add Account > +Offline Account > Loan > follow the prompts making sure to select "Mortgage" for Loan Type.  During this process:
    • Quicken will generate a Loan Reminder with a split category.  Be sure to select the payment account you will use to pay the mortgage.  The first line of the split category will be for Principal reduction and there will be another line for Interest.  Quicken will adjust the dollars for each of these each month based upon the interest and payment terms you entered earlier in this process.
    • If you have other costs involved with Mortgage Account payments (such as Insurance, Taxes, etc.) you can enter them as additional category lines in the split category, making sure to enter the dollar amounts as positive numbers.  The sum total of the categories in the split must equal the Loan Reminder payment amount.
    • During this process you will be given the opportunity to link this Mortgage to the Property Account.
    Once the Mortgage is set up, do not set it up to link it to the lender.  If you do your Mortgage will no longer have a register and you will not be able to link your Checking Account payment transaction to the Mortgage, nor will you be able to make edits to transactions (because there will be no register).  Instead, the lender will simply download and update the Mortgage balance with no details backing it up.

    So, keep the Mortgage account set up as a manual account and each month prior to making your Mortgage payment enter the Loan Reminder.  It will then show up in the Checking Account and Mortgage Account registers....the transaction will be a Transfer from the Checking Account to the Mortgage Account and you will have expense records that will show up in reports for interest, insurance, taxes, etc..  When the posted check downloads from the bank, it should match up with the Loan Reminder you previously entered.

    Keeping the Mortgage Account set up as a manual account instead of a linked-to-lender account will not be as accurate as if you linked the Mortgage to the lender but it will not be too far off.  Every once in a while you might want to manually enter a balancing adjustment in the Mortgage Account register.
    Do you have any questions?

    Quicken Classic Premier (US) Subscription: R55.26 on Windows 11

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