Mortgage asset and liability accounts not working correctly (edited)
![ihammerhands](https://us.v-cdn.net/6031128/uploads/defaultavatar/nTYA6S0SVB4GN.jpg)
Version: R26.23
Build: 27.1.26.23
Membership valid until: 06/09/2021
I've setup my home mortgage asset and liability accounts (no automatic download available) but the payment (single combined, not split yet) transferred from my savings account goes into the asset account as an increase. There is no option to transfer the money into the libality account. What am I missing?
Cheers,
Millard
Best Answer
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Hi again @hammerhands.
Okay - Coincidently, I used to have my mortgage with NFCU, so I understand the inability to download from the loan account.
I think you've indicated that the transfers of mortgage payments are apparently currently being posted to your "Home" account (which is - as you say - "an asset account") rather than to the correct accounts/categories.
What you need to do to fix that situation is to edit each transfer transaction and split it between the principal portion (which should be posted to the [mortgage loan account] ) and the interest portion (which should be posted in the "Category" field as "Interest Expense"). You should be able to determine the breakdown of the principal and interest amounts from your mortgage amortization schedule provided by the NFCU.
Here's how the entry would look:
Description Quicken Category Field Amount
Principal [NFCU Mortgage]* $1,000.00
Interest Interest Expense or IntExp $1,500.00
Escrow [Mortgage Escrow Acct Name] $ 500.00
__________
Total payment/transfer $3,000.00
*use [brackets] in the "Category" field for transfers
Hope this helps. Let me know if you have any followup questions.
FrankxQuicken Home, Business & Rental Property - Windows 10-Home Version
- - - - Quicken User since 1984 - - -
- If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you. -5
Answers
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Hi @ihammerhands,
How is the mortgage payment - which you indicate is being "transferred from" your savings account getting into Quicken - is it through a download from your bank?
FrankxQuicken Home, Business & Rental Property - Windows 10-Home Version
- - - - Quicken User since 1984 - - -
- If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you. -0 -
One way to enter a loan payment is to open the loan account, press Ctrl + Shift + N, and select Enter Loan Payment.0
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Please clarify this statement: "I've setup my home mortgage asset and liability accounts"The Home is an asset account. If you have an Escrow account associated with the mortgage, that's also an asset account.ONLY the mortgage loan itself is a liability. And it should start with a large INCREASE transaction, which will set the Balance field NEGATIVE (i.e., Red) in the same amount.Is this how you have things set up?
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0 -
> @Frankx said:
> Hi @ihammerhands,
>
> How is the mortgage payment - which you indicate is being "transferred from" your savings account getting into Quicken - is it through a download from your bank?
>
> Frankx
Download is automatic from bank savings. There is no automatic download from the NFCU mortgage. Quicken transfers the payment from the savings account to the liability mortgage account.0 -
> @NotACPA said:
> @ihammerhands Please clarify this statement: "I've setup my home mortgage asset and liability accounts"The Home is an asset account. If you have an Escrow account associated with the mortgage, that's also an asset account.ONLY the mortgage loan itself is a liability. And it should start with a large INCREASE transaction, which will set the Balance field NEGATIVE (i.e., Red) in the same amount.Is this how you have things set up?
The initial increase transaction did not create a negative balance. See the attached two images.0 -
Hi again @hammerhands.
Okay - Coincidently, I used to have my mortgage with NFCU, so I understand the inability to download from the loan account.
I think you've indicated that the transfers of mortgage payments are apparently currently being posted to your "Home" account (which is - as you say - "an asset account") rather than to the correct accounts/categories.
What you need to do to fix that situation is to edit each transfer transaction and split it between the principal portion (which should be posted to the [mortgage loan account] ) and the interest portion (which should be posted in the "Category" field as "Interest Expense"). You should be able to determine the breakdown of the principal and interest amounts from your mortgage amortization schedule provided by the NFCU.
Here's how the entry would look:
Description Quicken Category Field Amount
Principal [NFCU Mortgage]* $1,000.00
Interest Interest Expense or IntExp $1,500.00
Escrow [Mortgage Escrow Acct Name] $ 500.00
__________
Total payment/transfer $3,000.00
*use [brackets] in the "Category" field for transfers
Hope this helps. Let me know if you have any followup questions.
FrankxQuicken Home, Business & Rental Property - Windows 10-Home Version
- - - - Quicken User since 1984 - - -
- If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you. -5 -
It appears that your 1st graphic was taken from the HOUSE asset account, rather than the Mortgage account.And your 2nd graphic shows that the mortgage loan IS set up for download (Express Web Connect) which is why you can't view the loan register.See this for how to convert to a manually managed loan: https://community.quicken.com/discussion/7164936/faq-how-do-i-convert-a-loan-account-that-automatically-downloads-transactions-to-a-manual-entry-sc
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0 -
Seems to be working now.
Thanks to the community for assisting!
Cheers,
Millard0