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Loan Details adds $0.10 to loan principle

DoctorBrown

I have a car loan setup that appears to be working for the most part. But this month while entering the loan payment into the loan account there is an Extra Principle Paid Monthly entry of 0.10. But the Payment Details are correct. I don't see a way to change the Principle in the Loan Details.

Does anyone have any idea why this is occurring and how to fix it?

I've included screenshots of the two detail windows. The first one shows the Loan Details and the second one shows the Payment schedule. In the payment schedule the Principle amount is correct.

Screenshot 2024-05-15 100537.png

I appreciate any help. Thanks

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[Deleted User]

@DoctorBrown the two screenshots you provided are identical. I think the screenshot for Loan Details is missing. In looking at the Payment Schedule screenshot, I think the issue may be the "Total determines extra principal". Most likely there is a "rounding issue" in your Loan Details that is causing the .10 to be added to principal. Double check the loan parameters to make sure they work mathematically. Also try changing the selection to "Extra principal determines total" and see if that gets rid of the .10.

DoctorBrown

Oops, clearly I posted the wrong screenshot. Here's the correct one for the Loan Schedule. My loan is actually set to "Extra principle determines total". In any case, I want to get rid of the 'Extra principle'.

Screenshot 2024-05-15 100547.png

Looking further in the Loan Schedule things definitely look wrong. The first payment is fine. But for Feb, the principle and interest are correct, but the payment shown is wrong even though the loan balance is correct. I didn't show it but the interest changed from 5.99% to 5.985%.

Then for March the principle, interest and balance were still correct. Then in April the interest again changed to 5.9850% and the principle and interest and balance are correct. Then in April the principle and interest no longer matched the bank. This carried forward to May where I noticed the problem. The principle and interest are off and now Quicken is adding 'Extra Principle'.

What would cause the interest to change (could I have done something) and the payment amount to be off but balance correct?

What is the best course to fix this? Maybe this is something Quicken support would want to look at?

[Deleted User]

@DoctorBrown when I put in the loan terms you provided, the calculated loan payment came to 1159.69, but your payments are 1159.65. The 1142.03 loan payment for 2/15 may be a result of a change made in loan details that was corrected later. That is probably why you are getting that .10 adjustment.

You may want to check that the loan details are currently correct and recalculate. Then manually correct the P & I splits to match what the bank has. Hopefully this will get you back on track. I am not sure why there is a .04 difference in the calculated payment vs. the payment you have, but that might be another contributing factor in the .10 adjustment. If it is your bank that calculated the 1159.65 payment, then one way to make Quicken match is to adjust the interest rate by fractions until the calculated payment matches your bank.

UKR

AFAIK, Auto Loans are calculated differently from Home Mortgages, similar to credit card loans. Interest calculation varies with the exact payment deposit date at the bank.
Therefore, Quicken may not be able to correctly calculate your loan down to the last cent.
For my last auto loan, I had to always make corrections to both principal and interest amounts, to make payment details match what the printed bank statement indicated … a few cents here or there to keep the register balance in sync with the statement balance.
As has been discussed many times in the past here in the Community, that's unfortunately the way it works.

[Deleted User]

@UKR can't @drbrown26 manually change the P & I split in Qucken to match the bank's P & I split?

UKR

https://community.quicken.com/discussion/comment/20434298#Comment_20434298

Yes, everybody can manually adjust the amount of principal, interest, etc. AFTER (or while) the monthly payment reminder is/has been recorded in the register.
That's what I had to do with every payment of my auto loan.

NotACPA

Auto Loans are, ALMOST ALWAYS, "Daily Interest Loans" … where the interest due on the next payment is partially dependent upon the number of days since the most recent payment.

This is unlike a traditional mortgage, a "Monthly Interest Loan", where the full amortization schedule can be created at the time of the loan's creation.

SO, for a daily interest loan, it's not at all unusual to need to adjust the amortization in a payment when the next statement arrives.

And, while Q knows the day that you originated the payment, it can't possibly know the day that your lender processed it.

DoctorBrown

Yea, that's what I have to do, adjust the P & I to match the bank transactions. I have a home eq loan that is entering the correct figures. I got hung up on the one entry in the Loan schedule where the payment was wrong.

Thanks for all the help. It's all lined up now.