How do I Track a Refinanced Loan?
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- Select the Property & Debt tab.
- Select Property, then, in the Property Options drop-down menu on the right, select Add a new Loan....
- 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.
Example
| 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 |