How do I Track a Refinanced Loan?
- Select the Property & Debt tab on the darker gray menu bar just below the main menu bar.
- Under the Property Options drop-down menu on the right, select Add a new Loan.... (If you do not see the Property & Debt menu, select View > Classic Menus.)
- Click New.
- Set up your new loan.
- Open the liability account register for the new loan.
Quicken's Loan Setup has created the opening balance of this liability account as a transfer from the loan.
- Select the Opening Balance transaction.
- Click Split.
- In the Split Transaction dialog:
- Enter the payoff balance of the old loan as a transfer to the liability account for the old loan. The old loan account should now have a balance of $0.00
- Enter the mortgage interest you paid when closing out the old loan. Be sure to use the same category for interest that you used with the old loan.
- Enter the refinance fee.
- If you are refinancing in order to withdraw some cash as equity, enter the equity amount as a transfer to your checking (or other applicable) account. (Optional)
- Click OK to close the Split Transaction dialog.
- Press the ENTER key to save your opening balance changes.
This example transaction uses... This example amount: New loan $70,330 Old loan $40,000 Interest for payoff of amount $300 Recording fees $30 Cash from equity $30,000
Following steps 1 through 4 in the procedure above, the opening balance in the liability account for the new example loan would be $70,330.
Continuing with steps 4 through 7, you would enter these lines in the Split Transaction dialog:
Category Amount Transfer to liability account of old loan $40,000 Mortgage Int (or personalized category name you have been using for this purpose) $300 Bank Charge (or personalized category name you have been using for the purpose of recording mortgage related fees) $30 Transfer to the account in which you want to deposit the equity (Optional) $30,000