Add New Mortgage Loan - Define "Opening Date"

Question

Example: I closed on a $500K mortgage on 6/20.  At that time I paid pre-paid interest from 6/20 to 7/1.  As such, starting on July 1 I still owe $500K.  The first payment, due August 1, will be for principal and interest for July 1 to July 31.

In Quicken, when I add a new Loan - Mortgage, it asks me for the "Opening Date"… do I enter 6/20 (the day I closed) or 7/1 since I did not make the first payment until 8/1?  (My current guess is to use 7/1.)

mshiggins · Answer

I would use 7/1 as the loan opening date. The pre-paid interest for June was likely included in closing costs. You can record closing costs as a split transaction or in an escrow account.

[Deleted User] · Answer

@TerrenceT the opening date is the date that the loan was issued, which is typically closing date.