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Gerry

10 Jan, 2024 02:55 AM

These numbers are from the Credit Union paperwork.
Percentage rate of loan is 9.99
59 Payments at $197.32
1 Payment at $197.13
Also there is insurance $347.62 for the life of the loan calculated Monthly it should go down with early payoff
Finance charge $2491.39
I do plan making extra payments monthly ( no penalty for early payoff)

If you notice the calculated payment is $1.25 more than the Specify Payment. (what the Bank requires)
Where am I going wrong?
Any and all help is appreciated
Gerry

  1. 1 Posted by dwg on 10 Jan, 2024 03:16 AM

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    You have included the insurance amount as part of the principal, therefore the software includes that when it calculates interest.

  2. 2 Posted by Gerry on 04 Mar, 2024 05:41 PM

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    I did correct (remove) the Insurance from the loan amount.
    Is there a way to show extra cash payments cash payments to a loan account?

  3. 3 Posted by Gerry on 04 Mar, 2024 06:36 PM

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    Also I've made extra payments but the Bank takes the Interest from the payment:
    -$500.00 Amount $440.88 Principal $59.12 Interest
    The $500 is coming from my checking so I can't change the amount. After a couple extra payments I'm now $138.02 off.
    ow can I make the extra payments and have it show correctly?

  4. 4 Posted by dwg on 04 Mar, 2024 08:02 PM

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    To make an extra payment to a loan you have to initial the transaction from the source side, so in this case from the Cheque account. So you would enter a transfer in the cheque account with the category being the loan account. The loan account should recalculate the overall interest amount I do not believe it will take interest from extra one off payments, the remider transaction is geared to do that.

  5. 5 Posted by Gerry on 05 Mar, 2024 12:09 AM

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    Thanks for the reply I have a monthly payment coming from the Checking account but I also make extra payments of $500 that does come from checking but as you see above the $59.12 Interest is not going toward interest leaving only $440.88 going to the Principal MD is putting the hole $500 to principal. With this months extra payment of
     -$500.00 $444.90 went to principal and $55.10 to interest.

  6. 6 Posted by dwg on 05 Mar, 2024 02:59 AM

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    The only way that I can think of that may work is to setup the entry in the Cheque account as a split transaction with a portion going to interest and the remainder to the loan account.

  7. 7 Posted by Gerry on 05 Mar, 2024 01:36 PM

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    I'll give it a try.
    Thanks for your help.

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