Mortgage Itemization and Tracking Struggles

hokiealum08

Hi all. I set up my mortgage, incorrectly it seems because I didn't include the property tax and homeowners insurance as itemizations, and my first payment was made on 5/1. I have since gone and made the adjustments to the loan details. Now, I was expecting Quicken to treat the payment to the loan similarly to how paychecks are done; the money would be allocated to the correct categories and accounts. However, this was not the case.

So as of now, I have an incorrect withdrawal from our checking account because I itemized the transaction from inside the loan register, splitting it between interest, principal, insurance, and property taxes. No matter what I do, I can't seem to get it to show the correct withdrawal from our checking account, while still providing the correct itemizations to principal, interest, etc.

I've read about setting up a manual escrow account to funnel taxes and insurance but I need help understanding how to correct the itemizations of this and future loan payments. Can anyone help?

Tom Young

"I set up my mortgage, incorrectly it seems because I didn't include the property tax and homeowners insurance as itemizations"

I believe what you're saying here is that during the setup of the loan, on the "Loan Details" screen, you neglected to enter the escrow information in the "Other" box, resulting in the "Total Payment" total not agreeing to the actual payment?

"So as of now, I have an incorrect withdrawal from our checking account because I itemized the transaction from inside the loan register,"

No, do your itemization over in the checking Account. Leave the loan Account alone with only that 1st payment of principal entered there. The actual payment out of the checking Account is more than the regular P&I payment calculated by Quicken, so split that larger disbursement. Quicken is very particular about the order of entries for loan splits so be sure to use the correct line of the split screen for the escrow amount:

This example shows the escrow amount transferred to an Account (that you have to set up before you make this entry) so that's where the escrow amount for the 1st payment would show up.

Now go back over to the loan Account and click on the blue "edit" next to "Monthly Payment." Edit the "Other" box to include the montly escrow amount and you should be good to go.

hokiealum08

Thank you @Tom Young that did the trick.

NotACPA

BTW, in my Mtg txn, I have multiple transfers to my Escrow acct, with different Tags, so that I can track the tax component and the Insurance component separately in Escrow.