Why do it every month? Why not just a single adjustment at the end of the
year? Instead of a separate adjustment, the final payment can be adjusted so
the annual amounts and end-of-year balances are correct.
--
Chris Cowles
Gainesville, FL


"Matt Whiting" <whiting[at]chilitech.net> wrote in message
news:cu5qb401p9s[at]enews1.newsguy.com...
- quote -

Because there are 1,000 ways that Money and the W2/5498/1099/1098 data can
differ, it is ALWAYS a good idea to use the data that's reported to the
IRS--what's on the forms, not data directly from Money.

"Matt Whiting" <whiting[at]chilitech.net> wrote in message
news:cu5qb401p9s[at]enews1.newsguy.com...
- quote -

Chris Cowles wrote:

- quote -

I just manually override the principal and interest rates each month
when I record a payment, however, it is a nuisance that I was looking
for a way to avoid. Apparently, Money provides no way to avoid this in
its present form. Given the popularity of calculating mortgage interest
on a 12 equal payment basis, I'm surprised that Money doesn't offer this
as an option.

The fact that it doesn't match exactly is one of the reasons that I
can't allow TaxCut to extract my financial information automatically
from Money. I still have to enter things manually as I don't think the
IRS would accept the excuse that my taxes were wrong because Money can't
compute loan interest correctly.


Matt

In microsoft.public.money, Matt Whiting wrote:

- quote -

Check http://www.hughchou.org/calc/formula.html

- quote -

Can you not give Money the principal and payment amounts and let it
calculate the interest? It will be off by a few decimal places but you can
always adjust the principal balance at the end of a year. Other than not
being obsessed with absolutely matching the lending institution's
calculations, am I missing something?
--
Chris Cowles
Gainesville, FL


"Matt Whiting" <whiting[at]chilitech.net> wrote in message
news:cu552802ptr[at]enews4.newsguy.com...
- quote -

Art McClinton wrote:

- quote -

Thanks, Art. I was afraid that was the case. Although, I can't even
make Money match an Excel spreadsheet when I use daily interest in Excel...


Matt

Money uses daily interest. So you will not be able to match your CU's
method.

Art

Matt Whiting wrote:
- quote -

Does anyone know the algorithm that Money 2004 uses for mortgage
calculations? I have an ARM with monthly payments and Money has never
matched the amounts from my credit union. I set up an Excel spreadsheet
and it matches the credit union to the penny.

The credit union uses the simply interest rate/12 calculation for each
monthly payment. I'm wondering if Money is using a daily interest rate
and factoring in the number of days in each month. Anyone know?

I've selected the option to calculate the interest on "the date the
payment is due", but am wondering if I should use the "date lender
receives payment" option. Although, I don't see how this would make a
difference as I have direct debit payments and thus the dates are the
same. However, if one option uses a different interest algorithm that
would make a difference.


Matt