Verify Account Information for an Amortized Loan in Quicken 2012

When you're setting up an amortized loan in Quicken 2012, there is a lot of work to be done after you've pressed the Done button. From the Set Up Loan Payment dialog box, complete the following steps:

1

Verify the principal and interest payment calculated by the program.

If it’s wrong, you can keep going. You probably entered one of the loan calculation inputs incorrectly, such as the loan balance, loan term, or the interest rate. Fortunately, these errors are only a minor bummer.

2

(Optional) Indicate any amounts you pay besides principal and interest.

Click the Edit button. Quicken displays the Split Transaction dialog box, which you can use to describe any additional amounts the lender requires you to pay. In the case of a mortgage, for example, you may be required to pay property taxes or private mortgage insurance. After you enter the information and click OK, Quicken calculates the full payment and redisplays the Set Up Loan Payment dialog box.

3

Indicate how you make payments in the Type drop-down list box.

Choose one of the payment transaction types listed in the Type drop-down list box. Payment means that you handwrite checks; Print Check means that you print checks by using Quicken; and Online Pmt means that you use Quicken Online Banking to make electronic payments.

4

If you print checks by using Quicken and want to put the payee’s address on the check, click the Address button in the Set Up Loan Payment dialog box.

Quicken displays a dialog box that you can use to input the payee’s address. When you finish providing name and address information, click OK and go get another cup of coffee. When you come back, Quicken will have redisplayed the Set Up Loan Payment dialog box.

5

Type the lender’s name in the Payee text box.

The payee is just the name of the person or business that loaned you the money.

6

(Optional) Type a memo description.

Does the lender always get mixed up when you send the check? Stick the loan account number in the check’s Memo text box.

7

Type the date of your next loan payment in the Next Payment Date text box. Enter the interest category.

Open the Category For Interest drop-down list and choose the appropriate category.

Quicken lets you schedule (have Quicken automatically enter) or memorize (just have Quicken remind you to enter) loan payments and electronic payments. Click the Payment Method button. Then fill in the dialog box that appears. It’s not all that difficult.

8

Ignore the Loan website text box.

If you just can't ignore it, go ahead and enter the lender's website address if you want to have the information stored someplace handy within Quicken.

9

With the Set Up Loan Payment dialog box displayed, click OK.

Quicken removes the Set Up Loan Payment dialog box and asks whether any asset is associated with the loan. If you want to associate an asset with your loan, Quicken walks you through the steps for setting up an asset account. But you know what? Don’t worry about setting up an asset account.

It actually isn’t worth it. Just click No. Quicken displays a new Net Worth tab, or window. You probably want to see the new liability you’ve set up in its own register, so click the new account. Quicken displays a register window with any of the loan’s transactions.

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