I am setting up a new mortgage on QFW. When going through the mortgage-specific setup panels, one of the items asks if I would like to set up a remind. When specifying yes, I notice it creates a split with allocations for the principal and the interest.
Does anyone know if this information is updated between payments based on the specific amounts left in the mortgage? In other words, if I issue a pre-payment of principal during the middle of a subsequent month, does it automatically update that split based on the information it is receiving from a OSU from the FI?
If not, than perhaps simply having a single payment amount to a category would be simpler and I could simply look at the mortgage account on Q to see what is going on.
Thanks.
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John Pollard
If you have a traditional mortgage and you make a prepayment of principal, Quicken should adjust the Payment Schedule to reflect that ... which, depending on the amount of the prepayment, may also reduce the number of payments due.
[The adjustment does not come from the financial institution: Quicken recomputes its Payment Schedule.]
If you open the loan in Quicken to the Payment Details page, you should see a button to "View Payment Schedule". If you click that button, you can view and print the entire payment schedule.
Do that before you enter your loan payment with a payment of extra principal, then after the payment has been entered. You should be able to verify whether Quicken made the proper modification to the payment schedule.
[Just going from memory here, but it's possible you will need to include the extra principal in a regular loan payment transaction (the Reminder in your case). You can test that to be sure.]
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Andrew
Yes, this all makes sense. I'll give it a split shot accepting what Q offered me when I accepted the offer to create a "loan reminder" and will report back. Thanks.
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John Pollard
Just to clarify:
The Quicken Reminder (or Memorized Transaction) used to make a Quicken loan payment is not the source of the principal/interest split.
The loan payment Reminder (or Memorized Transaction) always looks at the Quicken loan Payment Schedule to get the principal/interest split.
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Andrew
Exactly! And that's my question. If one prepays principal, the split amongst subsequent payments increases the interest portion while increasing the principal payment. That's why I am wondering if the split that is actually in the register (it was setup with the splits when I agreed to have a reminder entered) ALSO gets updated according to the updated loan payment schedule, or are they always fixed from the initial term as far as the payments in the register are concerned.
If that is the case that they do NOT get updated, then as I said, I'll just categorize the whole payment to a single category and simply view the loan payment schedule.
J
John Pollard
If you add the extra principal to the mortgage payment reminder before (*) it is entered in the loan payment account register, Quicken will update the loan payment schedule to reflect the NEW principal/interest splits for all remaining loan transactions.
I'm not following your problem here.
As I said, the principal/interest splits are not maintained in the loan payment Reminder; they are maintained in the loan payment schedule. If the loan payment schedule is correct, the Reminders that use it should be correct.
Once the Quicken loan payment schedule has been recomputed by Quicken to reflect the extra principal you paid, all subsequent loan payment Reminders will pull the recomputed (presumably correct) principal/interest splits from that updated payment schedule.
As each loan payment reminder is Entered, the subsequent loan payment reminder (seen in Manage Bill and Income Reminders) will be updated to reflect the new principal/interest split that is in the loan payment schedule.
I can't grasp what you think will "not get updated".
I can't imagine any scenario where that would be a good way to deal with extra loan principal payments.
[ (*) I can't remember for certain, but it is possible that if you Enter the loan payment reminder in the loan payment account register, THEN modify it to increase the amount of principal paid, Quicken MAY not update the loan payment schedule. In which case subsequent loan payment transactions entered from the Reminder will not be correct - they will reflect the original principal/interest splits.
But I believe there may be a couple of approaches to bring the loan payment schedule up to date (to force the recompute of the payment schedule) - they're just more work than I'm willing to do on speculation.
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Andrew
I don't mean for that to have been JUST for the extra payment; it would be for ALL the payments if the splits in the register aren't updated. I'll see what happens on my second automated payment after I make an extra deposit to principle after the first automatic payment is made tomorrow, 11/1.
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John Pollard
J
John Pollard
Even when there is no payment due for a while, it's pretty easy to determine what happens when there is extra principal applied to a Quicken loan using the loan payment Reminder (or Memorized transaction).
File > Copy or Backup File > Create a Copy or Template.
Copy EVERYTHING.
In the copied .QDF file:
Note (print, if needed) the Loan Payment Schedule.
Tell Quicken to Enter the next loan payment Reminder ... with an extra principal split line.
Then compare the Loan Payment Schedule to the one before the payment was Entered.
[NOTE: a .QDF file created by the above Quicken Copy feature will have ALL online-enabled accounts deactivated for downloading. For the above suggested test, that will pose no problem, as the copied file was just for the purpose of the one test and can be deleted.
But for those that want to continue to use a copied .QDF file created by the above approach, they will have to re-Activate all their accounts that were de-Activated by the Copy.]
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