Mortgage Setup (Win)


When you set up a loan for money you are borrowing , such as the money you've borrowed for your home mortgage, Quicken sets up two accounts. The asset account tracks the value of your home. The liability account tracks the balance and payments of the mortgage. As you make loan payments, Quicken keeps track of the balance of the loan's principal, and of how much you have paid in interest. This last number is especially important, because interest on home loans is tax-deductible.

Quicken for Windows uses an assistant to help you set up your loan and asset accounts. Begin by choosing Property & Debt > Property & Debt Accounts > Add Account. The Quicken Account Setup Assistant appears, with a choice of different loan types. Click House (with or without Mortgage) , then click Next .

Give the account a name . This is the asset account, so you can use the choice that Quicken gives you ( House ), or you can use another descriptive name. Click Next. On the next screen, enter the date you bought the property, the purchase price you paid, and the current estimated value. You don't have to enter exact numbers here; you can change them later if needed. Click Next.

If there is a mortgage on the property, click Yes to create a liability account, then click Next.

The Edit Loan window appears, with the Opening Date already filled in (it is the same as the date you bought the property). Fill in the Opening Balance , the Original Length of the loan (typically 30 years for a home loan), the Compounding Period (that is how often interest is calculated; ask your lender if you're not sure), and how often you make payments. Click Next.

If you have a balloon payment, enter its information. Otherwise, from your latest mortgage statement, enter the loan's Current Balance and the as of date, the Payment Amount (add together both the Principal and Interest), the next payment date where it says due on , and the loan's Interest Rate . Click Done.

The Edit Loan Payment window appears. In the Payment section, the Current Interest Rate and Principal and Interest fields will already be filled in. If you have other amounts in your monthly paymentfor example, if you make monthly contributions to an escrow account for property taxesclick the Edit button. A Split Transaction window will appear. Enter as many line items as you need to account for the extra monthly amounts you pay, then click OK. You'll return to the Edit Loan Payment window, and the total of the line items you added in the Split Transaction window appears in the Other amounts in payment field. Quicken calculates the Full Payment amount.

In the Transaction section, choose the payment Type (Payment or Print Check), and enter the Payee. Check that the Next Payment Date and Category for Interest are correct, then click OK.

In the Account Bar, you can see that the asset ( House ) and liability ( House Loan ) accounts have been created. The asset account shows the current value of your home. The liability account, which is a negative number, shows how much you currently owe on your mortgage, and the total shows your home equity.



Managing Your Personal Finances with Quicken. Visual QuickProject Guide
Managing Your Personal Finances with Quicken: Visual QuickProject Guide
ISBN: 0321293657
EAN: 2147483647
Year: 2004
Pages: 107
Authors: Tom Negrino

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