How to handle re-finance

I set it up with a new loan and used the old asset account. That is what you really have here is a payoff of the old loan using the proceeds of the first loan.

For purchase/sale/refi, I always set up a Q account to represent my HUD-1 (think of it as the Title Company's closing account). More or less captures all the detail from the HUD-1 that applies to me. I enter it by line item.

Anyway, after the closing account is set up, I create my new loan & that first xctn becomes a "deposit" into my closing account (you might have to adjust the xctn in the Loan account). Then, coming out of the closing account, I also create a x'fer into my old loan that "should" get it's balance to $-0-. It's generally done w/ a split so that I can capture whatever daily interest has accrued since my last payment.

Stipluated that it's a little anal, but I generally find that it's easier to understand things if you model reality.

Bartt wrote in news: snipped-for-privacy@e3g2000vbs.googlegroups.com:

This sounds exactly what I do. Create an asset account through which all money flows related to the closing of the new loan. When done the old loan liability acct has a zero balance, the new loan liability account has the new loan balance, the closing account has zero balance and the property asset account is unchanged, unless certain costs related to closing must be capitalized. I use the HUD-1 line numbers and terms on transactions/transfers to make it easy to see where things are going.

scott s. .