On 11/2/2023 12:49 PM, Alan Johnson via gnucash-user wrote:
Your mortgage payment should be fixed, adjusting one a year for escrow
review.
You can automate / enter a year's worth of payments from bank to
mortgage account.
You should also have a the 360 (or other) payment amortization table as
part of your loan packet which shows you what each payment will be for
Principal and Interest. Unless you are paying extra, you can just
follow that to pre-enter your transactions.
a) You are unlikely to receive an amortization table for free (I would
have had to pay a bit extra for it and that was four? decades ago. Since
software was how I made my living, I wrote my own program. Note that
this is NOT as trivial as some here think when the problem is to match
one done by somebody else. You don't know which of the methods they
used, where they were rounding, or what the final payment would be (it's
NOT going to come out exact). My program began with a standard "present
value" method, then began some trail and error adjustments till matched
to the penny what the lender had for the payment amount and minimized
how different was the final payment.
b) If you DO have an amortization table, ideally you make extra payments
in the amount of the next principle payment (or sum of the principle
payments of the next several payments) and then you just cross off those
payments. In other words, you next principle/interest division will be
that of the next uncrossed off payment. In effect, you are "buying" time
off the end of the loan (mortgage ends sooner). This can be very cost
effective in the early years of the mortgage when interest is a
significant percentage of the payment.
Michael D Novack
_______________________________________________
gnucash-user mailing list
[email protected]
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
