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How to set-up a refinance mortgage loan?

I recently did a refinance. I set up the loan with zero balance and then transferred the open balance to the new loan. However, when I look at the new loan in Quicken, it shows a loan amount of .01 with a payment amount of the balance.  So, I must have done this wrong.  

How are you supposed to add a refinance loan and close the preceding loan without out losing the history?
  • Which version of Quicken and Operating System?
    Was the new loan for more that the balance on the existing?
  • Quicken 2013 on Windows 7 64-bit.
  • No. I paid the closing costs separately.
My method is a little more involved, but similar.  I create the new loan, and a new escrow account [my refi's have been for houses and part of the payments go into an escrow account to pay property taxes and insurance].  I use the transaction out of my banking account that pays for the money brought to closing to contain all of the splits. I have a split line for nearly every line on the HUD-1 Statement.  The Payoff of first mortgage category is the old loan [+] (a positive amount), the points paid are categorized as loan interest [+], other fees such as document, title, tax stamps, recording fees are categorized as interest expenses [+].  I have a split line that has the new loan amount with a transfer from the new loan as a negative number [-]. Any credits from the lender would also be listed as a negative amount.  I then go to the register of the new loan and delete the original balance.  The first transaction in the register of the new loan is a transfer from my banking account.  If you did a cash out refi (rare given the housing market) using this method, you would use the deposit from the money received at closing to record all of the split lines reversing the positive and negative amounts.

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