How do I set up and track a loan or mortgage?
Article ID: HOW14982
The Quicken program’s EasyStep Loan Setup will help you to track a loan and create a payment schedule for the loan. Mortgages are handled in the same manner, so follow the same steps to track your mortgage.
Tip: You may want to print these steps for easy reference.
To access the EasyStep Loan Setup:
- Go to the Property and Debt menu, and choose Loans (or go to the Net Worth menu and select Loans, depending on your version of Quicken).
- In the View Loans window, click New. and then click Next to the message "EasyStep will now help you set up a loan in Quicken".
- Select the type of loan you want to set up (Borrow Money or Lend Money ), and then click Next. The Quicken program will calculate the correct payments for the loan based on the information you enter during the rest of this setup process.
- If you have already set up an account in Quicken to track the outstanding balance (principal) for the loan, select Existing Account. and then select the account from the drop-down list. If you have not set up an account yet, click New Account. enter a name for the account, and then click Next .
- In order for the Quicken program to accurately calculate the remaining payments for the loan, it needs to know whether you have already made payments on the loan. Choose Yes or No. and then click Next .
- Enter the date that you opened the loan and the original amount borrowed.
- A new bank loan, enter the loan amount in the Original Balance field. The Quicken program will insert today’s date in the Opening Date field. You can edit the date if necessary. Click Next .
- An existing bank loan and you do not want to enter all previous loan payments into Quicken, enter the original balance of the loan in the Original Balance field, and then enter the date that you first took out the loan in the Original Date field. Click Next .
- An existing bank loan and you want to have a complete record of all prior payments, complete the loan setup process, and then enter all of the prior payments in your checking account. This set up method is not recommended, because the Quicken program’s payment schedule does not require this historical information. Click Next .
- If your
loan has a balloon payment at the end:
- Enter the same time period for Original Length and Amortized Length .
- If you know the Amortized Length of the loan, select Years. Weeks. Months. or Payments. and then enter the number of years, months, or weeks for the loan.
- If you do not know the Amortized Length. click Please Calculate the Amortized Length for Me .
- If your loan does not have a balloon payment, select No. and then click Next .
- When asked to enter the Original Length of the loan, select Years. Months. or Weeks from the drop-down list, and then enter the number of years, months, or weeks for the loan. The Original Length refers to the period of time that payments are due, starting from the date the loan was opened and ending on the date the last payment is due.
- If your loan is tracked by number of payments, select Payments from the drop-down list, and then enter the number of payments for the loan. Click Next .
- Enter the payment period for the loan. If none of the Standard Period settings correspond with your loan, select Other Period. and then enter the number of payments required per year.
- Enter the compounding period for your loan. Select Daily. Monthly. or Semi-Annually from the drop-down list, and then click Next . The compounding period affects how much interest is owed on the loan. The more frequently the interest is calculated, the higher the total interest. When borrowing money, your lender will provide you with information on how often your loan is compounded.
- Enter the date of the first payment, and then click Next .
- Select Yes or No when asked if you know the current balance of your loan. (This information can be found on your monthly account statement or other documentation provided by the lender.)
- If you select No the Quicken program will calculate the balance for you.
- If you select Yes. enter the Payment Amount (Principle + Interest), and then click Next .
- Enter the date of the next payment, and then click Next .
- Enter the interest rate that will be in effect for the next payment, and then click Next . For loans that have adjustable or fluctuating rates, it will be necessary to update the interest rate periodically from the Edit Payment window.
- The first Loan Summary window will display the loan information you entered previously. If the information is correct, click Next. The second Loan Summary window will display the information you entered regarding balloon payments, current balance, and payment information. If the information is correct, click Done. If you chose to have the Quicken program calculate any of these amounts, they will be calculated when you click Done .
If an amount Quicken has calculated based on the information entered appears to be incorrect, verify the loan setup information with your lender. For additional information or assistance during the loan setup, click Help in the Loan Setup window.