Loans - amortized interest entry
A mortgage, a car loan - most any loan starts out with a high percentage of each installment payment going towards interest, with little going to principal. As the loan ages, the allocation to interest goes down, and more is applied towards principal.
In Money Dance - when memorizing a mortgage payment, or other type of amortized loan - there is no ability to set up the correct proportions each month of allocation to interest vs principal. If I set up 36 months of payments, on a $10,000 car loan, at 6% - and memorize that payment every month on the 5th - all 36 months are memorized at the same amount of money applied toward interest, and the same applied to principal.
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1 Posted by Tom Freeman on 03 Jan, 2011 02:33 PM
Scott,
Instead of memorizing the loan transaction you should use the reminder feature. When setting up the loan it asks if you want a reminder. The reminder option, allows you to both automate the transaction and have the adjusted principal/interest brought forward. You can also have the reminder auto-commit the payment.
Tom
2 Posted by scott on 03 Jan, 2011 05:48 PM
Apologies - actually what I did was create a Transaction Reminder. I've gotten adjusted to using these to remind me when bills are due. I did not think about just editing it before hitting Record. That solves that. Very much appreciated.
Tom Freeman closed this discussion on 04 Jan, 2011 08:26 PM.