unofficial microsoft.public.money FAQ and A
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Q) How should I handle my mortgage escrow account?
A) Let's assume you already have a loan account and scheduled payment setup for the mortgage. If you haven't already setup the loan, you can setup the account described below and then specify the transfer as an "Other Fees" item to the create loan wizard.
Next, setup a cash account for the escrow. You can call it Escrow (Mortgage).
In your Loan Payment scheduled transaction, add a split element for Transfer:Escrow for the total amount of escrow collected with each payment. Enter transactions to pay the taxes (category Taxes:Property Tax or similar) and insurance (category Insurance:Homeowner's or similar) from the Money escrow account, as your mortgage processor actually does, when they tell you what the amounts paid are.
You can balance the escrow account to the statements of escrow activity.
Microsoft has added an MSKB item to answer the same question. The link was posted in the newsgroup by Himanshu Gohel.
References:
MSKB: 899623 escrow account How-To
Please see this disclaimer if you are using Money 2005 or this comment if you are using Money 2006.
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How to do things in Money: Mortgages and stuff Q) I just made an extra principal payment to a loan. Why can't I just use Transfer to show this in Money? |
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Last update: 10 December 2006 |
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