I replied to this post 12 hours ago, it appears to have shown up on the web
interface, but not on the usenet interface (not the first time)...

I munged a few words that might have gotten my first reply eaten by the
rumored spamfilter, and reposted...

"majorent" <majorent[at]discussions.microsoft.com> wrote in message
news:791C4D5C-9DD9-4DB0-A66E-0ED89D1B911A[at]microsoft.com...
- quote -

There is no problem with the asset value: As the loan is paid down, the
asset does not become worth more: What increases is the equity in the
asset. Money 2004 and earlier used to show equity value in addition to
asset value when viewing the asset account register (either left margin or
lower margin).

The asset value won't change unless you change it yourself to account for
appreciation/depreciation.

Even when equity was displayed, it accounted only for the house and the
primary mort-gage. There were a fair number of complaints from ppl that
couldn't link both a mort-gage and a HE-LO-C and have it reflected in the
equity value, which may be part of why this feature disappeared with Money
2005.

Although there isn't a specific report to show equity in Money 2005-Plus,
you could customize the "Account Balances" report, and then save it as a
Favorite report, to show the house, mort-gage, HE-LO-C, etc, which would
show you your home equity.

--
Scott Tyler
agent_scotty-at-hotmail-dot-com

To slightly amplify the replies Scott and Steve offered:

The Loan Payment has two components: the first is an interest expense
component; this is what you are paying to rent the money. The second is a
Transfer to the Loan account--this transfer reduces the liability balance of
the Loan Account. So, you owe less. This increases your Equity. (Value of the
asset - amount of liability you have on the asset.) It doesn't change the
value of the asset. Only the real estate market does that.

"majorent" wrote:

- quote -

majorent wrote:

- quote -

This is correct. The asset account represents the market value of your
house. Your house did not become more valuable because you made a
payment.

The value in the asset account will stay constant unless something
happens to change the market. Every year after tax assessments come
out, you could make a small change to your house asset account to
reflect the market change. Well, what the government thinks your house
is worth, anyhow.

--
Steve Bell
New Life Home Improvement
Arlington, TX

I set up the mortgage as per several instruction i have found.
The asset account is linked to the loan.

I made a payment and the loan amount was lowered, however the asset value
was not increased.

Any ideas what the problem is? and how to fix it?

I'm using Money 2007