How to link my monthly payment to my mortgage lender with the automatic bill reminder?

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I first setup online payment to my mortgage lender, but it didnt break down the transactions by principal and interest. So, reading up from other posts, I created a mortgage/loan account that has automatic bill reminders (with automatic transaction entry). It only lets me set these up to come from one of my accounts (checking for example)

Now I am trying to figure out what to do with the transactions that will show up to my mortgage lender as the payee.

I have seen plenty of posts on how to set up automatic transactions to your loan account and have it broken down correctly, but no one says anything about how to link the actual monthly payments to your lender with those automatic bill reminder.

When I try to edit the reminder, it only lets me skip the current instance or delete all future payments.

I cant figure out how to automatically show that my $2k transaction to ABC Mortgage lender is for my XYZ Home Loan where $900 is principal and $1100 is interest. Can anyone provide some insight?

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  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
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    This is a bit hard to follow and I don't see what the problem is.

    "I first setup online payment to my mortgage lender, but it didnt break down the transactions by principal and interest."

    The way I'm reading that sentence is that the loan servicer offers you the option to have the servicer "pull" the monthly payment out of your checking account at the due date - similar to what many vendors do these days - OR you've instructed you bank to cut a check of $2k and send that to the loan servicer.

    Is that correct?

    "I created a mortgage/loan account that has automatic bill reminders (with automatic transaction entry). It only lets me set these up to come
    from one of my accounts (checking for example)"

    So now you have the loan setup in your Quicken file as a mortgage, and each month's payment will automatically be entered as a $2k withdrawal, with the $2k properly split between principal (a Transfer to the Quicken mortgage loan Account) and interest (a Category) and the loan servicer's name as the Payee. And of course since your checking account is where that money is coming from - even though the servicer is the one "pulling" the payment out of the account - that's the account that you pointed to when Quicken asked, essentially, "where is this payment coming from?"

    Is that correct?

    If you've done the two steps above then everything should be good. The payment will automatically be pulled by the loan servicer, the entry will automatically be entered by Quicken in the checking Account, the loan balance will be reduced properly and the interest expense will be logged into the correct Category.