Refinance with Cash Out - Old and New Accts
mdclermont
Quicken Windows Subscription Member ✭✭
In October we did a refi with cash out to make some improvements on our home. I want to:
1-Close out the old mortgage account (pay off the old account).
2-Establish the new mortgage acct.
3-Set up reminder payments that are entered automatically 14 days before pay date that accurately allocate the payment to principal, interest, and escrow.
4-Make sure cash out proceeds are reflected in my checking account (pretty much already did this when the proceeds were wired in).
1-Close out the old mortgage account (pay off the old account).
2-Establish the new mortgage acct.
3-Set up reminder payments that are entered automatically 14 days before pay date that accurately allocate the payment to principal, interest, and escrow.
4-Make sure cash out proceeds are reflected in my checking account (pretty much already did this when the proceeds were wired in).
1
Answers
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Hello @mdclermont
Thank you for taking the time to visit the Community to report this issue, although I apologize that you have not received a response.
If you have not done so already, please take a moment to review the information on loans available here.
If you are encountering a specific issue with any of these steps please let us know.
-Quicken Tyka
~~~***~~~0 -
@Quicken_Tyka I understand the "how to set up a new loan", but I want to know is the best practice for doing the transaction? For Example:
Do I set up the new loan and show a payment from the new loan to the old loan to establish the balance owed in the new loan?Quicken Home, Business, & Rental Property Version: R47.15 Build: 27.1.47.150 -
Hello Tony,
Thank you for the response and clarification, although I apologize for the confusion.
The support article here, recommends:- Set up your new loan.
- Open the liability account register for the new loan.
Quicken's Loan Setup has created the opening balance of this liability account as a transfer from the loan.
- Select the Opening Balance transaction.
- Click Split.
- In the Split Transaction dialog:
- Enter the payoff balance of the old loan as a transfer to the liability account for the old loan. The old loan account should now have a balance of $0.00
- Enter the mortgage interest you paid when closing out the old loan. Be sure to use the same category for the interest that you used with the old loan.
- Enter the refinance fee.
-Quicken Tyka~~~***~~~0
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