Microsoft KB Archive/149551

Money: How to Track a Refinanced Loan

PSS ID Number: Q149551 Article last modified on 09-30-1997

2.0 2.0a 3.0 3.0a 4.0 4.0a 5.0

WINDOWS

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========================================================= 2.0 2.0a 3.0 3.0a 4.0 4.0a 5.0 WINDOWS Kbusage kbhowto

= SUMMARY =

When you refinance a loan that you have been tracking in Microsoft Money, the only way to update the loan information to reflect the refinance is to pay off the existing loan, and then recreate the loan using the new loan information. The following article tells how to accomplish this task.

= MORE INFORMATION =

To pay off an existing loan or create a new loan, see the steps outlined below for your version of Money.

Paying-off Existing Loan
Use the following steps to pay off an existing loan. These steps assume that you have a payoff statement provided by the original lender and that you are familiar with the balance procedure.

  Use your most recent loan statement to balance your loan up through the final regular payment you made.   Balance the Loan again, entering information as follows:   In the Statement Ending Date box, enter the date on which the refinancing took effect. Click Next.   In the Principal Paid box, enter the full principal payoff amount.   In the Interest Paid box, enter the amount of interest paid in the final payoff.   Click Finish.    Money gives a message that the principal plus interest you entered does not agree with the Loan Account payments, and an adjustment will need to be made. Click Yes. Money enters an adjustment transaction in the Loans window, leaving the Ending Balance at zero. The Account field in the transaction is blank because the refinancing doesn’t affect any of your Money Account balances. You’re now ready to set up a new Loan with the new amount, interest rate, and other terms of the refinancing. </li></ol>

Setting-up New Loan - Money for Windows 95:
Use the following steps to set up a Loan in Money for Windows 95. Before you begin, make sure you have your loan documents handy.


 * 1) In the Account Manager, click the New Account button.
 * 2) As the account type, select Loan, and then follow the screen instructions.
 * 3) When you reach the Summary screen, make sure your loan information is correct.
 * 4) If you want to change any information, click the Back or Restart button to return to the wizard screen you want to change. Make your changes, and then click Next until you return to the Summary screen.
 * 5) When the Summary information is correct, click Create.

Money finishes creating the Loan and its payment schedule, including any past payments which you wanted recorded.

Setting-up New Loan - Money 2.0, 3.0
To set up a loan, do the following:

  On the File menu, click Loan List. </li>  Click Create. The Set Up Loan Wizard begins. </li>  At the Introductory screen, click Next, and then follow the screen instructions. </li>  When you reach the Summary screen, check to make sure your loan information is correct. </li>  If you want to change any information, click the Back or Restart button to return to the Wizard screen you want to change. Make your changes and click Next until you return to the Summary screen. </li>  When the Summary information is correct, click Create. Money finishes creating the Loan and its payment schedule, including any past payments which you wanted recorded. </li></ol>

= REFERENCES =

“Microsoft Money Guide to Personal Finance,” Chapter 7 “Microsoft User’s Guide,” version 3.0, Chapter 24 “Microsoft User’s Guide,” version 2.0, Chapter 21

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Additional reference words: 2.00 2.00a 3.00 3.00a w_money roll over re- finance refinancing update lower interest rate 97 theClaw mortgage

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========================================================= Version : 2.0 2.0a 3.0 3.0a 4.0 4.0a 5.0 Platform : WINDOWS ============================================================================= Copyright Microsoft Corporation 1997.