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Rocket mortgage split amounts are wrong

Luka731

Hi, I am not able to get Rocket Mortgage split amounts to persist across all projection areas. I have changed the mortgage components (principal, interest, additional principal, and escrow/taxes/etc) several times in the main mortgage account, but I am still having to manually adjust a significant (~$900 per month) amount in each individual transaction. This is causing my principal, interest, and payoff charts to be misstated.

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Boatnmaniac

Which edition and version of Quicken are you running? (Help > About Quicken)

Please describe what you are doing to change/adjust the amounts of the various loan categories?

If possible, take a snapshot or snapshot of where you are making these changes/adjustments and showing the issue you are describing. See the FAQ at this link for tips on how to do this if you have questions:

https://community.quicken.com/discussion/7867159/faq-how-do-i-post-a-screenshot-in-the-community-from-windows

Luka731

I connected my loan account to Rocket Mortgage, but I konw there are lots of compatibility issues (aka….it flat out doesn't work). I entered the details for my mortgage manually, and made sure the breakdown is correct. In this screen, it is correct:

The "other" above is my escrow (mainly property tax and homeowner's insurance). When I look at the actual breakdown/split, it is throwing a significant dollar amount difference as a negative number, and overcalculating my principal payment each month. It's throwing off my spending graphs, showing that I am spending almost double the amount on my mortgage principal. I've deleted and rebuilt this multiple times and it keeps coming back with the same issue. This is what it looks like in my transaction detail:

Thanks in advance for your assistance!

Boatnmaniac

I connected my loan account to Rocket Mortgage, but I konw there are lots of compatibility issues (aka….it flat out doesn't work).

OK, now I understand. What you are showing is a great example of why "it flat out doesn't work." And it explains why one should not connect the loan to the lender and also use the loan payment calculator at the same time….because they conflict with each other.

When a loan account is connected to the lender, there should be no account register for the loan. What the lender downloads each month is the updated loan balance and Quicken then transacts that a balance adjustment which is treated as a principal reduction.

When you use the payment calculator (linked with your checking account?) you are also entering a principal payment. This results in a duplication of principal paid. And this is why you are seeing the negative dollar amount in the loan reminder….it is Quicken's attempt to bring the total of the load reminder allocations back into balance with the total PITI payment amount by adding a balancing adjustment line in the split category.

Quicken will then recalculate the remaining principal due which will significantly alter the amortization schedule. Manual edits to the loan reminder will not hold because loan reminders, by design will, continuously recalculate based upon the loan account data in Quicken.

If you want your mortgage account connected to the lender, then you should stop using the loan reminder calculator. Instead create a standard bill reminder for your checking account that is not connected to your mortgage account at all. Instead and enter split categories for the various allocation buckets….just make sure that none of the categories are for a transfer to the mortgage account. I had done this long ago with a boat loan and I ended up having to set up a couple of custom sub-categories as shown in the following picture. You could add other subcategories for taxes and insurance.:

The disadvantage of this method is that Quicken will not calculate the PITI allocation amounts for this bill reminder at all. You will need to manually adjust the allocation amounts each month.

Or, you could do what I now do and what most other SUs do: Deactivate your Mortgage account so it is no longer connected to the lender. Then you should have a mortgage account register and can enter some adjustments as needed for the principal balance. Follow that up with redoing the loan reminder calculator.

Then each month enter the loan reminder into your your checking account each month before the bank downloads the posted payment. Quicken should match the downloaded posted payment to the loan reminder that was previously entered. You will still need to make some small adjustments to the principal and interest allocations each month (Quicken's calculator will not match the lender's calculator with 100% accuracy but it will be pretty close).

After the payment has posted, downloaded, matched the reminder and you make any PITI allocations adjustments Quicken will recalculate the allocations for the next month's loan reminder.

Any questions?

Luka731

Thanks for the super thorough explanation. As I am working on disconnecting the loan account from the lender's website, i noticed it is not actually linked. Wondering if I need to delete the current mortgage expense account and re-add it as a new account?

Otherwise, if I am following the next steps correctly - I need to go in and rebuild the monthly bill reminder with the correct breakdown of principal, interest, insurance/taxes, and additional principal, and then the monthly download cycle should match correctly….am I missing anything?

Thanks again for the very detailed response, I really appreciate it!

Chris

mshiggins

@Luka731 did the mortgage payment split ever work properly or has it been having this same problem since the beginning?

Also, do you sync your data to the Quicken cloud?