Adding past mortgage payments to Quicken and accounting for escrow accounts

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Hello all, I am new to quicken and learning as much as possible.

Windows 11 Home

Version: R49.33

Build: 27.1.49.33

My goal is to go as far back as possible in adding all my incomes and expenses, to see my income/expenses and my net worth change over time. I understand this will be a lot of manual entry, that is ok as I am a data nerd.

I am trying to figure out how to add past mortgage payments properly for two properties I own. I am about 6 years in on the ammonization schedule. Both mortgage payments have a escrow account.

From what I understand, quicken doesn't like past loan payments using the loan wizard, so I am going to set up a offline asset loan in order to get the register to display in that account.

My goal is then to record all my transfers from my primary checking account to this offline loan account and have the payment be split into principle, interest, taxes, and insurance. It seems as there is a way to set up this split once and it gets triggered by typing in the correct payee but this does not seem to work for me. From what I understand the "set loan reminders" feature splits are for transfers moving forward, not past transfers.

Is there a proper way to set this up and have all the splits be categorized correctly? Thanks in advance!

Answers

  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
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    There's no reason why you can't start the Loan Wizard 6 years in the past.

    BUT NOTE, that those old loan payments, taken out of your current checking account, are going to significantly reduce the current checking balance, How are you going to account for that?

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • petereberhardt
    petereberhardt Member ✭✭
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    My plan is to also be adding in all the income from 6 years in the past as well, all the transactions from all my statements for the last 6 years. My issue is when I add a loan account online, I cannot see any register that keeps track of the payments. That is why I created a offline account. Is that correct?

  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
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    You can't see it BECAUSE it's online … that's the shortcoming of online loans.

    Leave the loan offline, but download into checking for payment verification

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • petereberhardt
    petereberhardt Member ✭✭
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    > @NotACPA said:
    > You can't see it BECAUSE it's online … that's the shortcoming of online loans.
    >
    > Leave the loan offline, but download into checking for payment verification

    Thanks for clarifying the online/offline difference.
    What exactly do you mean saying, "payment verification"?

    Also, do you know if this the proper way to set up your splits:
    -The interest you are paying is considered an expense and you should have a category for that
    -The principle isn't an expense, it is just a transfer to your loan account balance that is getting paid down
    -The escrow is also a transfer to your escrow account where from there it will be treated as an expense when you pay your taxes and insurance
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
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    @petereberhardt

    ————————————————————————-Also, do you know if this the proper way to set up your splits:
    -The interest you are paying is considered an expense and you should have a category for that
    -The principle isn't an expense, it is just a transfer to your loan account balance that is getting paid down
    -The escrow is also a transfer to your escrow account where from there
    it will be treated as an expense when you pay your taxes and insurance ————————————————————————-That is correct.

  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
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    "Payment verification" is to show that the payment was made.

    Your monthly mtg statement shows that it was received, reconcile the loan to this.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • petereberhardt
    petereberhardt Member ✭✭
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    Thanks @NotACPA

    I think I have all my accounts, mortgages, loans, escrows, businesses, rental properties, categories, and tags set up correctly and deep in the weeds now tying it all together. Thanks for your help!!
  • UKR
    UKR SuperUser ✭✭✭✭✭
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    If you can't make Quicken set up a manual mortgage account register with the loan starting a few years ago,

    • set it up as of the next monthly payment due, with correct remaining balance, number of payments, etc. and let it define a Scheduled Reminder for the next and future payments.
    • set up a Split transaction with the proper categories as used in above reminder to record the old transactions. Pull in Split detail for each old payment's pricipal, interest and escrow from mortgage statement or other records you may have.

    The transactions generated by the above should look similar to this example:

    Be sure to keep these 4 lines in order shown. If you don't pay additional principal, keep line 3 with $0.00 amount.

This discussion has been closed.