I noted the problem getting them to match to the penny at the get go.

Glad you got this sorted out.

"Brian Pellerin" <bpellerin_SPAM_NO_[at]austin.rr.com> wrote in message
news:9rIEd.1665$RW3.1415[at]fe1.texas.rr.com...
- quote -

After much consternation, I've finally figured out that this is impossible.
My request was to get the total interest paid on the loan to match the
actual interest paid. This can't be done. Here's what's happening....
Money is always recalculating the P & I. So if you adjust any entries in
the account, it recomputes the totals. Since I can't tell Money exactly
how much the Mortgage company says I owe, it can never be right.

What would be needed is for Money to accept a final "Terminating Payoff"
transaction. This would turn off the P & I re-calculator and go into a
mode where I could then make my final adjustments. In general, it's a
simple adjustment of accounting for their final fees + moving some money
from principal to interest or vice versa.

(For example: Money says that I paid $1000.28 in principal and $399.72 in
interest. In real life, I may have paid $1000/$400 respectively so, I'd
adjust the $.28 from principal to interest). Don't do this!!! Any
adjustments you make up or down will cause a +/- balance to appear. Accept
that the Microsoft version of a loan is an estimate of your mortgage, not an
accounting of your mortagage). Although I'm crazy enough to worry about
the $.28, in my case, the amount is over $100.

I certainly appreciate the help that was offered in this forum. It helped
me realize what was actually happening. Also, borrowing from the FAQ, I
went back and changed my many entries to a single combo split for the home
sale and this cleaned up nicely.


"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:u59AkCs9EHA.2632[at]TK2MSFTNGP10.phx.gbl...
- quote -

If you record the settlement interest in one of these transactions, you get
the right answer for the category, just not in your desired account. You
note that "in reality, on a loan payoff, I'm paying off both Principal and
accumulated Interest from the last payment to the payoff date." This is
certainly true, but what really belongs in the loan is the Principal as a
Liability and its decline back to $0. Note that the Interest component of
your Loan Payments from, say, Checking shows up against the Account named
Checking.

The problem you are really citing is that you want the Loan Transactions
report to list this.

I just went and played around with this: on my most recent refi, both
interest expenses (settlement interest on the old loan and prepaid interest
on the new one) were included in the Loan Payment split that did most of the
settlement activities and BOTH are included in the Loan Transactions report
for the loan that was the target of the Loan Payment transaction. This
throws off BOTH the Loan Transaction report for the old loan and the one for
the new loan. I could probably get around this if I cared, by moving the
prepaid interest to another Loan Payment transaction targeting the new
account and leaving it in the holding account for the settlement
transactions in the meantime.

I suggest you play around with doing the settlement in a Loan Payment
transaction that targets the old loan to see if this gets you there. You can
always do this in a copy of your data file and pitch the copy if you don't
like the results.

"Brian Pellerin" <bpellerin_SPAM_NO_[at]austin.rr.com> wrote in message
news:SqlEd.20141$q4.14320[at]fe1.texas.rr.com...
- quote -

Surprisingly, I was doing something similar to the FAQ. The only difference
was that I had multiple transactions (instead of a split) and used my asset
account for the home as the Temp account. I don't have any problems
getting the loan account to zero out.

My specific problem is that I wanted the total Interest Paid when I run a
Loan Transactions Report to match the 1098 form that I get at the end of the
year. The final transaction noted by the FAQ is a Principal Transfer. In
reality, on a loan payoff, I'm paying off both Principal and accumulated
Interest from the last payment to the payoff date.

I'm guessing that I shouldn't expect accuracy for loan accounts - getting it
to zero is good enough. :-(


"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:OhHNz5n9EHA.3820[at]TK2MSFTNGP11.phx.gbl...
- quote -

Thanks for the link. I'll digest this and post any updates. I appreciate
the help.

--brian


"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:OhHNz5n9EHA.3820[at]TK2MSFTNGP11.phx.gbl...
- quote -

Have you read http://umpmfaq.info/faqdb.php?q=110? Read it and its
referenced refinance companion and then mess around a while. If that does
not get you there, post back. The odds you will not need to adjust the old
loan balance somewhere in the pennies are slim to none. A wedge transaction
will almost surely be required. You should be able to match everything
else--provided you go to the work to do so.

"Brian Pellerin" <bpellerin_SPAM_NO_[at]austin.rr.com> wrote in message
news:g5eEd.18920$q4.3594[at]fe1.texas.rr.com...
- quote -

I've refinanced my house and need to close out the loan. I keep my books
balanced to the penny and this is driving me crazy. If you can explain
why this makes sense or a better method, please do.

When closing out the loan, you have the following... 1) Final Regular
Payment, 2) New Interest from the last payment to the date of closing, and
3) Various Fees (such as recording, fax, funding, etc) that are added into
the loan balance and 4) Escrow balance, which may be subtracted from the
loan balance. In the end, the title company nets these values and writes a
single check.

On the date of my final payment, the following is true: 1) Escrow balance
accurate, 2) Principal Balance is Accurate and 3) Interest Paid is accurate.
When it is all said and done, I want the Interest Paid for this loan to
match the 1098 that I will receive at the year end. So, what I need to do
is to change the loan to have a interest due with no principal due. If I
use an account adjustment with the Category of Interest Exp., then the
principal is increased as well. To account for the fees, I've made
Adjusting Entries for these using the Category of Closing Costs. So, I have
to make an adjusting entry to reduce the Principal Balance.

I want the loan account to zero out with no correct-my-mistake adjusting
entries. Does anyone have a good solution for this??? Thanks in advance.