Microsoft KB Archive/873275

= Money: How to record a down payment when you purchase a house =

Article ID: 873275

Article Last Modified on 4/8/2005

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APPLIES TO


 * Microsoft Money 2005 Deluxe Edition
 * Microsoft Money 2005 Premium Edition
 * Microsoft Money 2005 Small Business Edition
 * Microsoft Money 2005 Standard Edition
 * Microsoft Money 2004 Deluxe Edition
 * Microsoft Money 2004 Premium Edition
 * Microsoft Money 2004 Small Business Edition
 * Microsoft Money 2004 Standard Edition
 * Microsoft Money 2003 Deluxe Edition
 * Microsoft Money 2003 Deluxe and Business Edition
 * Microsoft Money 2003 Standard Edition
 * Microsoft Money 2002 Standard Edition
 * Microsoft Money 2001 Standard Edition
 * Microsoft Money 2000 Standard Edition
 * Microsoft Money 99 Standard Edition
 * Microsoft Money 98 Standard Edition
 * Microsoft Money 97 Standard Edition
 * Microsoft Money 2000 Business & Personal Edition
 * Microsoft Money 98 Deluxe Edition
 * Microsoft Money 98 Financial Suite Edition

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INTRODUCTION
This article describes how to use Microsoft Money to record or to track a down payment when you purchase a house.



MORE INFORMATION
Most mortgage lenders require a down payment of 5 percent to 20 percent of the sale price when you purchase a house. However, Money does not have a specific method for recording the down payment.

As a workaround, record a down payment in Money.

For example, you want to purchase a house that is valued at $400,000.00. When you purchase the house, $100,000.00 is to be used as a down payment, and $300,000.00 will be borrowed from a bank as a home loan. In this case, the value of the home is $400,000.00, but you owe $300,000.00.

To record a down payment in Money, follow these steps:
 * 1) Create a Home account that has a value of $300,000.00.
 * 2) Record a $100,000.00 transfer transaction from another account, such as a saving account or a checking account, to your Home account.

Note The balance of your Home account is now $400,000.00.
 * 1) Create a $300,000.00 loan account and associate the loan account with your Home account.

Additional query words: money2004 money2003 money2002 money2001 money2000 money99 money98 money97 msmoney msmoney2004 msmoney2003 msmoney2002 msmoney2001 msmoney2000 msmoney99 msmoney98 msmoney97 usage

Keywords: kbhowto kbui KB873275

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