Mortgages & Reconcillating

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07 Sep, 2020 04:57 PM

I've created a mortgage under a "loans" account as well as the payment from a checking account.. It's set up to split principal & interest, interest rate, etc. The checking payments show correctly in the mortgage/loan account. The problem is reconciling the checking account. The bank's checking information is downloaded, and the split payment (principal & interest, properly categorized) to the mortgage company is shown as "cleared." All fine to this point. When I try to reconcile the checking account, the split payment does not appear, even though all other entries appear. Since it does not show in the reconciliation window, it keeps showing as a balance "difference" in the same amount of the mortgage payment. Can you help solve this problem for me. Jerry.

  1. 1 Posted by shopper on 14 Sep, 2020 07:40 PM

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  2. Support Staff 2 Posted by Maddy on 15 Sep, 2020 12:39 PM

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    Firstly, please accept my sincere apologies for the delay in responding to your query, Jerry!

    We are sorry to hear about the problem you have encountered.

    Generally to ensure your set up is correct, you can create an asset account called e.g. "home". Put in the full value of your home as the initial value.
    Create a new asset called "loan" on home and make it a sub account of the home account. Put in the current principal of the loan.

    On the side bar, the home loan should be listed below and slightly aside of the loan. The total listed on the side bar should be your current equity ( home value minus principal).

    When you make a payment from your checking the payment should be a split with one line for the interest category and the second as a principal pay down to the home loan account. This should decrease the amount owed on the loan and it should roll up increasing your home equity.

    I have attached a screen shot showing the split transaction and the side bar illustrating it. It was a $300k loan with $200k outstanding before the payment.

    The sub account should roll up to the parent account. So if the sub asset account of the loan shows the interest the parent account should adjust as well.

    If this does not seem to help, please let us know and we will investigate further.

    I hope this information is helpful. Please let me know if you have further questions or need any assistance.

    Maddy, Infinite Kind Support

  3. 3 Posted by shopper on 15 Sep, 2020 01:54 PM

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    Why would I set up a mortgage account as an sub-asset instead of a loan? Using the loan account, it automatically calculates the payments. I already have the split set up, and it properly applies the principal against the loan balance. That part works fine. My issue is that the split mortgage payment from the checking account does not show up in the reconcile window and keeps showing as a balance "difference" in the same amount of the mortgage payment. I just want to be able to reconcile the mortgage payment from the checking account.

  4. 4 Posted by shopper on 15 Sep, 2020 02:05 PM

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    Also, along the same lines, when I try to import (OFX) information on the loan, the import process does not show the loan. It shows assets, credit cards, etc. but no loans.

  5. Support Staff 5 Posted by Maddy on 15 Sep, 2020 02:35 PM

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    Please, can you send us a screenshot of what you're seeing. You can read instructions for taking a screenshot here -

    Thank you

    Maddy, Infinite Kind Support

  6. 6 Posted by shopper on 15 Sep, 2020 02:45 PM

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    ok, got it al solved. thanks.

  7. shopper closed this discussion on 15 Sep, 2020 02:46 PM.

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