Mortgage Renewal

robgarr104's Avatar

robgarr104

30 Jun, 2021 10:25 PM

I am not sure how to payout and close a mortgage in Moneydance when it will be replaced by a new mortgage...any suggestions?

  1. 1 Posted by mhoggie on 01 Jul, 2021 01:28 AM

    mhoggie's Avatar

    just a user,

    I would simply create another loan account in MD and make the old account inactive

  2. 2 Posted by robgarr104 on 01 Jul, 2021 02:50 AM

    robgarr104's Avatar

    How do I make it inactive without deleting it? When I am in the account,
    there is no option to add a transaction that would allow me to pay the
    account out and if I delete the account, it will totally destroy my
    records...

  3. 3 Posted by mhoggie on 01 Jul, 2021 03:15 AM

    mhoggie's Avatar

    just a user,

    Highlight the account, click account, edit. Toward the bottom of the edit screen you will find the button to mark the account as inactive.

  4. 4 Posted by robgarr104 on 01 Jul, 2021 08:34 PM

    robgarr104's Avatar

    I can make the account inactive, but that doesn't change my net worth. I
    want to pay out the old mortgage with funds from the new mortgage...in
    other words, I want the old mortgage to read 0. I can't see how to do
    that...

  5. 5 Posted by Stuart Beesley ... on 01 Jul, 2021 08:41 PM

    Stuart Beesley - JUST A FELLOW USER and Toolbox ‘guy’'s Avatar

    You should be able to create a txn and in the category field use the name of the other account to create an intra account transfer?

    (Not support, just a fellow user)

  6. 6 Posted by robgarr104 on 01 Jul, 2021 09:04 PM

    robgarr104's Avatar

    Thanks Stuart, I will give that a try...

  7. 7 Posted by robgarr104 on 01 Jul, 2021 09:16 PM

    robgarr104's Avatar

    There is no category field available in a loan account, so that doesn't
    work...

  8. 8 Posted by mhoggie on 01 Jul, 2021 09:54 PM

    mhoggie's Avatar

    just a user,

    I love to use a "Null" category to deal with these types of issues where MD doesn't offer a built in method to resolve. Just create a new expense category and name it "Null" or "NA" so you can always understand what the category is used for. Then make a note of your remaining balance on your mortgage and find the last payment you made from your checking account and right click-duplicate that transaction. Go to the new duplicate transaction, update the date, make any notes about loan payoff, open the split category, delete anything except the principle and update the principle payment to the amount you noted that was remaining on the loan. Then submit that transaction. Now you need to move that transaction out of your checking account to the "Null" "NA" category. Select the transaction, select "batch change", "Account", and select the "Null" "NA" category. Click OK and the transaction will disappear from your checking and the mortgage will have zero balance. Now check your Net Worth and you will see that the old Mortgage amount is gone.

  9. 9 Posted by Stuart Beesley ... on 02 Jul, 2021 06:02 AM

    Stuart Beesley - JUST A FELLOW USER and Toolbox ‘guy’'s Avatar

    I assume this is a MD 'Loan' account? I see that you can pull the money into the account, but if you go to the other account with the funds - e.g. the bank account, then there you can create a payment txn and put the mortgage account in the category field. This will send funds to the mortgage account. I'm guessing that you want a new mortgage to pay the old mortgage. In which case create two txns in your bank account. The first sends money to the old mortgage (creating a fake debt in your bank account), the second pulls money from the new mortgage account (balancing out the bank back to zero). I don't know if this is the only way to do this, but I just tested it works ok.

    (not support, just a fellow user)

  10. 10 Posted by robgarr104 on 02 Jul, 2021 09:19 PM

    robgarr104's Avatar

    Yes, this worked although I used a dummy holding account moving money in
    and out to make it work...it's all good! Thanks for your help...

  11. System closed this discussion on 01 Oct, 2021 09:20 PM.

Comments are currently closed for this discussion. You can start a new one.

Keyboard shortcuts

Generic

? Show this help
ESC Blurs the current field

Comment Form

r Focus the comment reply box
^ + ↩ Submit the comment

You can use Command ⌘ instead of Control ^ on Mac