Trouble setting up interest-only variable-rate HELOC

sd_mark

I'm setting up Quicken Classic Premier R60.15. I've been using Quicken since 99 at least, and most recently Quicken 2014, but I don't want to carry over all the old categories, payees, etc., so I'm starting from scratch for 2025.

I have a variable-rate HELOC, tied to prime, changing as often as monthly. Only interest payments are required until the end of the 30-year term. (Can't get these loans any more!)

I'm having trouble setting up this up in Quicken Classic:

• I linked the bank and it set it up as a loan, then asked me to enter initiation date, amount, and interest rate, forcing a monthly principal and interest payment. It seems the only kind of loan Quicken knows about is a classic fixed-interest mortgage with mandatory principal and interest payments?
• I tried setting it up manually as a credit card (as I had it in 2014). I guess that will work, but I see now that it shows a huge negative "Banking" total. I can't get it to move down under Property & Debt.

I did review this thread:

https://community.quicken.com/discussion/7885759/how-do-you-set-up-variable-rate-and-interest-only-loans

If the replies in that thread are still correct, are they basically suggesting to leave it as a linked Loan account, just turn off reminders and ignore the loan details/payoff graph/etc.?

Am I missing anything? Does Quicken just not understand about variable-rate HELOCs?

sd_mark

Okay maybe I've got a solution: if I set it up as a credit card, then edit the account, go to the Display Options tab, and change the Account Intent from Credit to Liability, it moves down under Property and Debt. Now my Banking balance doesn't include the big HELOC. Then I added the House as an account; now Property & Debt shows the home value less the HELOC. Much better.

NotACPA

I think you've found a VERY viable solution. Since there's no required payments to principal, the Loan Wizard wouldn't apply.

What you've got (for at least 30 years) is monthly payments of interest with optional payments of principal, and the statements from your lender can best provide those amounts.

sd_mark

@NotACPA thanks for the confirmation. Since you were in banking, you may remember these WaMu loans ca. 2003…

NotACPA

Not only remember, I used to have one.