How to record refinance and a paid down mortgage balance?

Hi Everyone,

This situation is puzzling me and not sure how to record it properly in Quicken. We refinance a mortgage, but in order to take advantage of the really low rates we paid down the mortgage from a jumbo to a conforming loan. We wired the difference between the balance and the new loan to the settlement agency. The amount paid down is recorded as an expenditure in the ledger, but I am wondering if this should be a transfer of funds.

What is the best practice for this transaction? Unfortunately the old loan is recorded as zeroed out and I can't record the wire transaction as a transfer against that mortgage account in Quicken. Do I just leave it as an expenditure in the ledger and it is recorded as an expense? That seems to skew a lot of my reports if so.

Thanks for any guidance!

-PJ