Hi, I mistakenly setup my mortgage as a liability (instead of a loan) more than one year ago and now I realize that the balance is wrong as all payments were effectively applied towards the balance rather than principal and interest.

I understand now that I need to set it up as a loan with a special reminder that allocates payments between principal and interest.
The question is what to do with the existing account and transactions.

I believe that I should do the following, and I want to check with the community first if this makes sense:

1. Create a new loan account with the terms of the original mortgage, setup a payment reminder according to original dates.

2. Based on my most recent statement for my mortgage, post a transaction into the current loan account to move the difference between the current balance in the moneydance account and the principal remaining on the mortgage bank statement into "interest".
   .

3. Select all the payment transactions in the loan account and do "batch change" to change the account of the transactions to the new loan account, while leaving "category" as the bank account.

Does this make sense?
Or should I setup the new loan terms and reminder based on the remaining balance/payments and not the original amount?

thanks for your advice...