Principle and interest in loan account

mike.parfitt's Avatar

mike.parfitt

23 Feb, 2017 09:17 AM

I am having a problem I cannot find an answer to, nml:
I have a new mortgage account. From within that account I select "Action/Create Reminder" and fill in the entry interval, paying account and category for interest (Loan/Interest) and tick Autocommit. All works well with the various calculated splits showing up in the paying account and the principle component being deducted from the loan amount. However, this principle amount does not show up as an expense, even though the principle + interest is paid out to my bank, and is therefore an expense.
How can I get the principle component included as an outgoing? I previously used Quicken, and it did not have this problem (although it did have a number of others ;-) ) I feel I must be missing something here, but cannot find an answer.
Mike Parfitt

  1. Support Staff 1 Posted by Tom Freeman on 04 Mar, 2017 05:25 PM

    Tom Freeman's Avatar

    Technically your principal is not an expense, its the transfer from one asset account (bank) to your home's equity. Your net worth does not decrease because the decrease in your bank is offset but the decrease in your liability.

    An easy way to see the total of the principal paid in any given time period is to go to the transaction report. Edit to show only the mortgage account and select the dates desired.

    Tom Freeman
    Infinite Kind Support

  2. 2 Posted by mike.parfitt on 05 Mar, 2017 10:30 AM

    mike.parfitt's Avatar

    Thanks for the reply Tom,
    I can see what you are saying, but this does mean that the principle part of the payment also does not show up in your budget, and since it still needs to be "payed out" from your earnings, the budget will under report outgoings by that amount. Is there some way that I have not spotted to include it in the budget.?
    Best regards
    Mike

  3. Support Staff 3 Posted by Tom Freeman on 06 Mar, 2017 03:30 PM

    Tom Freeman's Avatar

    If you used the mixed interval budget, which is our old style of budgeting you can include the mortgage account. It takes a little more set up but can be customized.

    Here is the FAQ on using this budget format: http://help.infinitekind.com/kb/budgeting/creating-a-budget-using-t...

    Tom Freeman
    Infinite Kind Support

  4. 4 Posted by SnakeDog116 on 10 Mar, 2017 08:20 PM

    SnakeDog116's Avatar

    I'm not sure if this helps, but what I did is create a Mortgage Payment category.

    Then I make the loan get paid from the Mortgage Payment category instead of my bank account.

    From my bank account the full payment goes to Mortgage Payment.

    So it goes Bank -> Mortgage Payment -> Split between interest and going to the loan account.

    This might help you out, because then you can budget the 'mortgage payment' category as a monthly cost.

  5. 5 Posted by mike.parfitt on 20 Mar, 2017 11:36 PM

    mike.parfitt's Avatar

    Thanks for that suggestion.
    I will try that .
    Best regards
    Mike

  6. System closed this discussion on 19 Jun, 2017 11:40 PM.

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