Re: Quicken Mortgage Payment Question?

On 10/29/24 2:33 PM, Andrew wrote:
> On 10/29/2024 10:36 AM, John Pollard wrote:
>> On 10/29/24 7:38 AM, Andrew wrote:
>>> On 10/28/2024 10:21 PM, John Pollard wrote:
>>>> On 10/28/24 6:49 AM, Andrew wrote:
>>>>> 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 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.]
>>
>>> 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.

>> 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.

> Exactly!  And that's my question.  If one prepays principal, the split 
> amongst subsequent payments increases the interest portion while 
> increasing the principal payment.

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.

> 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.

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".

> 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.

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.