Projected Payoff

SilverEagle

Mortgage Payoff Chart issue.JPG

I have attached my mortgage account details page showing the Projected Payoff chart. It shows that the mortgage will be paid off by Jan 2029, which is inaccurate. The actual payoff is Nov 2031, but your chart is using the split amount assigned to my escrow in the calculations, even though I added it to the "Other" category when choosing the "edit" link next to the Monthly Payment shown at the top of the screen.

Is this a bug? Shouldn't the chart ignore the amount placed in the Other field and only use the principal, interest and additional principal fields?

Tom Young

So the escrow amount is being figured in the reduction of the outstanding principal?

Could you post a screen shot of the actual split window of a recent payment?

UKR

And why is there such a spike up in the balance of the loan in recent months? Something's not right … there shouldn't be an increase in balance.
We really need to see the Payment Details for all transactions in the last few months.

SilverEagle

Mortgage Payoff Chart issue - payment detail.JPG

Mortgage Payoff Chart issue - payment detail with split.JPG

The spike resolved itself this morning.

Mortgage Payoff Chart issue #2.JPG

Tom Young

Way back in 2013 Quicken - for some reason I don't understand - required that loan payment splits follow a very specific pattern:

and your screen shot appears to be following that pattern, so the escrow amount shouldn't be reducing the principal balance. Something else is going on here as the spike and then the resolution of that spike should not be happening unless some transactions got added or removed in the time period around that spike. I guess the next place I'd go from here is to print out Quicken's amortization schedule as a CSV file and put that into Excel alongside my own Excel-generated amortization schedule and see if anything jumps out as being wrong.

SilverEagle

So are we in a consensus that the Projected Payoff chart is using my escrow data? Can someone else confirm that their chart does not include their escrow data?

UKR

https://community.quicken.com/discussion/comment/20477918#Comment_20477918

Are you asking whether the escrow amount is added to the principal payment in order to reduce the loan balance?

IMHO, it shouldn't. But, looking at your Split Transaction detail view, I'm not sure what Quicken does with the totally blank line #3.
It used to be that line #3 was reserved for additional principal, using the mortgage account as transfer category and $0.00 as amount (or the amount of extra principal you paid this month).
If it appears to you that, in your case with the blank split line #3, Quicken is assuming that line #4 is additional principal instead and thus incorrectly reduces your payoff schedule … review and change all monthly payment transactions which have a blank line #3 to look like this, using the correct mortgage account name, of course:

• [Home State Bank - Mortgage] $0.00

and see if that corrects the payoff schedule.
Please do not forget to also change the scheduled payment reminder or memorized transaction to have a corrected line #3, for future correct payments.

NotACPA

I'd be greatly surprised if the issue is the escrow payment, which is almost as large as your principal payment.

If escrow was being counted as "additional principal", and thus almost doubling principal, I'd expect the payoff to be shortened by a whole lot more than 2 years.

To the right of that "Projected Payoff" graph, use the "What if I paid extra" feature to see what would actually happen with an almost doubling of the principal payment.

MilwaukeeLynn

I was able to fix my issue by going into the Loan Details and selecting edit terms and recalculate payment.

SilverEagle

@UKR I believe you discovered the issue. I had no idea that the 3rd line was dedicated for extra principal, so I would delete the blank line, thus moving the Escrow to line 3, causing more to be applied to principal, thus altering the chart.

You are brilliant! Thank you