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Set up mortgage & escrow - Quicken Deluxe 2013

Hi,
I have searched for this and couldn't find an answer I can follow. I am using Q2013.
I have just refinanced but want to set up the mortgage account from scratch.
  • I created an asset account [Escrow].
  • I created a mortgage loan using the wizard. It correctly calculated monthly P&I. (1.jpg)
  • Then I added the escrow amount in "Other" section. (2.jpg)
  • In the reminder step,  clicked on "Split" (3.jpg)
  • Changed the escrow amount category as a transfer to [Escrow] asset account (5.jpg)
  • Reminder wizard step changed to 6.jpg
  • Linked the [Home Loan] account to an asset account called [House]
I guess when FI pays the property tax and home insurance, I will have to make payment from [Escrow] account and split it between property tax and home insurace.
Did I miss anything?
I am new to this so I really appreciate your help.

  • Looks correct to me and yes, when the FI does make the payment(s) from the escrow holdings, you will need to reflect that as a payment from the [Escrow] account.
  • Thank you Splasher.
    When I check my "Bill & Income Reminders", it shows $1990.91 as the amount to be sent to FI but it shows 244 in the "# Left" column instead of 360 (i.e. 30 years). I am guessing it is taking the "Other amount" set up for escrow as part of P&I. How do I fix this?
  • If I remember correctly, there is a bug/issue with using the third line of the four original lines in the split for anything other than extra principle.  I know it sounds weird, but put the escrow allotment on the fourth line and put the third line back to a $0 principle payment.
    Write back with the results.
  • Perfect! Thanks for your help. Worked like a charm.
  • I am new to this forum. Is there a way to mark your response as answer or helpfull?
  • I think you can only mark Answers, not comments.   This forum recently changed to this new look.
  • I am having another issue and not sure how to resolve it. When I open "Home Loan" account that lists the amount of interest, principal and escrow I am paying and then view history of payments, the loan decreases by the same amount every month. Shouldn't it decrease by more and more each month? Did I make a mistake when I set up the home loan and escrow accounts as described above?
  • Is there any documentation on how to setup a home loan properly?
  • You're correct. The amount that goes to principal should increase slightly each month, and the amount that goes to interest should decrease, IN A NORMAL MORTGAGE  (I'm excluding "negative amortization" mortgages, reverse mortgages and the like).
    If it's not doing so, then you're probably using a memorized transaction, with fixed split amounts,, rather than a transaction that was set up by the Loan Wizard.
    db

    p.s., normally I'd tell you to start a new thread, and I'd close this one ... but since you were the original poster in this thread, I decided to let it continue.
    db
  • Thanks, I will post other questions in new thread.
    you're right, I am using a memorized transaction. Is there a way to fix this or do I have to start all over again?