Interest only home loan

Jen Jacobsen's Avatar

Jen Jacobsen

13 Apr, 2022 04:08 AM

How do I set up an interest only home loan? Whatever I try to do when I set up the "loan" account, Moneydance calculates a portion of my payment to go towards principle automatically. I don't see where I can override that and have the entire amount go to interest. Thanks

  1. 1 Posted by dwg on 13 Apr, 2022 09:40 PM

    dwg's Avatar

    I'm a fellow user.

    The Moneydance loan account only works for Principal and Interest loans, it is not designed for Interest only loans.

  2. 2 Posted by britanyweelborg... on 16 May, 2022 03:31 PM

    britanyweelborgbih63's Avatar

    I wouldn't take any credit at all, because credit is like a debt that you have to pay back over a period of time and still overpay. Learn to save money, and then buy and do not depend on anyone. Why, for example, would I take credit for a TV or a radiator I've been wanting to buy for a long time with if I can wait a bit and buy it in its entirety. This is certainly not an appropriate comparison, but in any case, it is better to save up and buy than to overpay for life.

  3. 3 Posted by dwg on 16 May, 2022 09:31 PM

    dwg's Avatar

    Interest only loans are often used by investors with an investment property. Interest becomes part of the expenses of the property and the loan itself is repaid from the capital gain upon sale, thus also reducing the amount of the gain that is taxable.

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