Mortgage loan with balloon payment

whodiini

I need to change the balloon amount in a loan and cannot find a way to do that. There is no place in edit terms to edit the balloon amount and date. It is not in loan payment. Where can I edit the balloon amounts?

Tom Young

As far as I know there's really no way to set up a balloon loan in Quicken, though that feature appears to have been available to earlier (per-subscription) versions. The only place you can get to the "Balloon amount" and "Balloon due" figures you see on the Loan Details tab in the loan Account is to select the "What if" tool and enter that information there. You'd need to look at the loan's amortization schedule to get that amount on the due date of the balloon. It doesn't really affect the loan per se, it's just a projection, as far as I can see.

UKR

AFAIK, a balloon payment is the amount that's left over after the agreed on monthly payments have all been made.

Can you tell us why you have to change the balloon amount?
Was it not correctly calculated when you set up the original loan?
Did something change that will have an effect on the balloon amount, e.g., skipped payments, change in interest rate, need to borrow more money, etc.?
Are all the monthly payments recorded correctly and does the loan balance match the bank statement?

NotACPA

Theorizing here.

Let's say that the loan is due in 20 years, but is amortized over 30. I'd set up the loan as-if it were a 30-year loan, and put a note in the Memo field of the Opening Balance txn about the balloon pmt at year 20.

At least, then, you'll get the amortization correct.

whodiini

Thanks for the suggestions, but nothing suggests an answer to my original question - I have a loan set up in quicken that shows a balloon payment with a date. I need to change the date and amount of the balloon payment. How do I do that? I dont want a workaround, I just want to edit the loan. Did Quicken remove that capability? If so, is it now impossible to edit? Do I need to set up a new loan and if so, I cannot insert a ballloon payment anymore? Strange that quicken would remove the abilility to edit but still leave it there!

whodiini

Does anyone know when quicken removed that capability? can I take my file, move it to a computer with that old version installed, edit the balloon, and then move it back?

NotACPA

OK, maybe if you explained why you need to change the loan we can provide more focused advice. Start by answering @ukr's questions.

Tom Young

From what I know - second hand - that feature was removed probably in the 2013 version, or thereabouts. I don't believe you could go back to that version using your current data file due to changes in format over time, but I'm not sure about that.

If nothing in the existing loan has changed beyond pushing the balloon payment (and amount) into the future, then you could stick with the current loan in Quicken and at the old balloon date "pay off" that loan with a new loan you create for that purpose, but the new loan won't be set up as a balloon loan.

whodiini

Thanks. I will try that.

I set up the loan a while ago around 2021 expecting to pay it off in the future. So allowing balloon payments was in Quicken until just a few years ago. I decided with the low interest rate of the loan, it doesnt make sense to pay it off early, so I want to wait a few more years until I pay it off. Hence, I still want to have a balloon payment, but change the date and payoff amount. I dont see how this info people are asking is relevant, as all I want to do is change the date of the balloon payoff, which seems no longer possible.

NotACPA

Set up a new loan, funded from the amount of the current loan. It's probably your only option.

whodiini

That seems logical. I will first try to revert (saving all my files) to an early 2021 version of quicken on a different computer, disconnect internet and open my current file and see if I can edit the balloon payment. Will let everyone know how that goes…. If it works, then I will move that file back to my regular computer and see how that goes.