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How to record mortgage payoff in Quicken

I found another answer to this question and followed the directions of selecting the account the mortgage payment comes from and clicking Ctrl + Shift + T, selecting the mortgage info from the drop down but the mortgage info is not in the drop down. Now what? My original loan was through Quicken Loans and I would update every month by clicking on the loan and doing the update. I just refinanced that original loan (which technically should be closed now) to get some equity out for renovations to my home. I was able to add the new loan info in Quicken (although their calculations are off by $.01, so I had to fudge that penny in there somehow). When I try to do the download for the old loan, I keep getting an error, which is why I am trying to do this manually.

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  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi Cori,

    So I understand that you want to record the payoff of your old mortgage loan because you refinanced that mortgage loan, and you can't download the relevant data from the old loan for some technical reason.  In addition you indicate that you actually refinanced both the payoff of your old mortgage plus increased the amount of the loan to allow you to take out some additional cash to pay for anticipated renovations.

    A couple of questions:

    Who paid-off the old mortgage - you or the new mortgage company?
    When you setup the new refinanced mortgage, what was the contra-account used for the first entry in the Quicken Account?  In other words, what does it say in the Category Field of the first entry in your new mortgage account in Quicken?




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  • Cori Foxworthy
    Cori Foxworthy Member ✭✭
    edited January 2020
    The original loan was through Quicken Loans. We refied our 15 year to get some equity out and did a 20 year also through Quicken Loans. So Quicken paid off the original loan technically. The new loan reads as the loan number and the word loan in Quicken. The original loan reads as Mortgage xx then the last 4 digits of the loan number. There is nothing showing in the register right now because our first payment isn't due until March 1st.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Okay, I probably misunderstood your original post - thanks for the additional info.

    So you've already added the account for the new mortgage loan in Quicken, but haven't entered any transactions yet. And the old mortgage account in Quicken has a balance that will be the "pay-off balance.

    The only thing left to do is to make an entry to record the new mortgage loan and payoff the old mortgage.  Here's what I suggest:

    Transaction #1 to pay-off the first mortgage:

    Open the Old Mortgage Account in Quicken and enter a new transaction as follows:

    Date field - Use the date that you refinanced (closed on the new loan)
    Payee field - Enter the name of the old mortgage company
    Increase field - Leave blank
    Decrease field - Enter the amount of the mortgage balance (this would be the amount on the line above the entry you are making now- the "current balance").
    Memo - Enter: "To record mortgage payoff on refinancing"
    Category - Here you will need to enter the Quicken Account name of the new mortgage in square brackets.  Above, you said the title of that account is "loan number and the word loan," so it would be look something like this [1234567 loan]

    Then hit enter.


    Next you should adjust the entry you made when you deposited the check for the equity drawdown so that it is reflected in the new loan balance.

    Transaction 2 - to add the additional equity drawdown to the new mortgage: 

    Open the New Mortgage Account in Quicken and enter a new transaction as follows:

    Date field - Use the date that you refinanced (closed on the new loan)
    Payee field - Enter the name of the new mortgage company
    Increase field - Enter the amount of the check you received from the refi.
    Decrease field - Leave blank 
    Memo - Enter: "To record equity drawdown on refinancing"
    Category - Here you will need to enter the same Quicken Category that you used to record the deposit of the check you received when you closed the loan.

    It sounds like you have the ability to download transactions into the new mortgage account.  If so, you should do that next.  

    I need to caution you that there could be differences in the new mortgage balance after you do these entries.  Those would be fees charged by the lender in connection with the refinancing.  We've not reflected those (if any) in the 2 transactions above but to record them, you'll need to make another transaction:

    Transaction 3 - to add fees to the new mortgage balance:

     Open the New Mortgage Account in Quicken and enter a new transaction as follows:

    Date Field & Payee Field = same as Transaction 2
    Increase field - Enter the total amount of fees charged.
    Decrease field - Leave blank 
    Memo - Enter: "To record fees charged on refinancing"
    Category - Here you should enter the account for the real estate - again use square brackets around the name of that account.

    Hopefully that should do it.  Let me know how it turns out.


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  • Well I must have set up the original loan incorrectly because there never was a transaction page for the actual principal and interest part of the loan. I did set up a transaction page for the escrow. So now how do I create a transaction page that will pull all info from my banking page for the mortgage payments? I also don't see a transaction page set up for the new loan.
  • I tried to enter a mortgage refinance transaction. In the new mortgage account, I updated the Beginning Balance with a split recording a transfer from my previous Mortgage and HELOC into the new mortgage account. However, now my net worth graph and totals are completely off. It appears quicken is seeing this as a payoff but doesn't recognize the new loan liability.

    Any suggestions?
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    That looks like it might be the "Net Worth by Assets and Liabilities" snapshot you've posted.  If you've simply entered a transfer from two old loans - closing out those loans - to a new loan liability, then my guess is that the new liability Account isn't included in the snapshot.  Click on the gear wheel in the upper right hand corner of the snapshot and make sure the new liability Account is included.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @Ryan McCabe,

    You said "In the new mortgage account, I updated the Beginning Balance with a split recording a transfer from my previous Mortgage and HELOC into the new mortgage account.

    You apparently made a "one-sided entry" - which happens if you simply adjust an "opening balance" rather than recording transactions which balance out.  So, in making this "one-sided entry" (that's accounting talk) you have completely removed the liabilities for the two previous loans.  That erroneously increased your net worth and we know that because on the graph:

    a) your Total Assets remained the same;
    b) your Total Liabilities decreased substantially;
    c) your Net Worth increased substantially.

    To fix it, you need to reverse that entry by increasing the "opening balance" of the new mortgage account by the "payoff amounts" of the two loans that were consolidated into it.

    Let me know if you have any followup quesions.

    Frankx


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