Home equity line payment

4birdie

I have a home equity line of credit that I make monthly payments to. I transfer the payment amount from my basic account to the equity line as a transfer. The amount is transfered but is there any way to have that payment (transfer) reflect both the intrest payment and principal?

I am using Quicken Classic Premier build 857.16

NotACPA

In your bank account, from which you make the payment, you need to SPLIT the txn with the proper amounts being directed to the HELOC account (principal) and an interest category.

If your HELOC is like one's that I've had, you probably won't know the amounts of those split lines until you get your next statement … so just input the bank transaction (where you DO know the total of the payment) with estimated amounts until you get that next statement.

HELOC loans are almost always "daily interest", where the interest component of the payment isn't known until the payment is posted by the lender. This contrasts with traditional mortgages ("monthly interest") where the principal/interest amortization is know at loan origination.

Jim_Harman

You would enter it as a split withdrawal in the basic account, with one line of the split being a transfer for the principal amount to the HELOC account and the second line charged to the interest Category. The total amount should equal the full payment.

4birdie

but how does that transfer to the HELOC account?

4birdie

I don't see any way to make a split transfer?

NotACPA

A transfer, whether in a split or not, is indicated by enclosing the name of the target account, enclosed in Square Brackets, as the category of the banking transaction. E.G, [HELOC].

UKR

Before you read more about creating a Split transaction, please tell or show us in your HELOC account register how the bank tells you how much of your monthly payment is principal and how much is interest.
Usually, from what I've seen,

• the bank posts a separate interest charge transaction to your HELOC register. This would be categorized as HELOC:Interest (or similarly named category) and increases your total outstanding loan balance
• your monthly payment transaction is a straight transfer from Checking to HELOC, categorized with the name of the HELOC register in [square brackets], e.g., [XYZ Bank HELOC] and reduces your total loan balance
  No Split transaction required here.