How to Convert Line of Credit Loan to Fixed Mortgage
I had a line of credit with an outstanding balance of $42,268.92. On October 1, I converted that to a fixed mortgage with a 265 month amortization period for a 3-year term. The bank credited the line of credit account to net it out to zero and created a new mortgage account. So I need to setup a new mortgage loan in Quicken. I can do that easily by adding a new loan but how do I handle the the reduction of the $42,286.92 to the L/C? Where do those funds go? I'd need to transfer them to a new loan account to show that the money is owed, but then I'd have to setup the payment schedule so that the loan principle is reduced each month. Not quite sure how to do that.
Comments
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Same answer as I posted here:
It's the exact same concept of changing an existing loan into a different loan in the same dollar amount.
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