Buying a house

[Derek Atkins]

Well, I'll explain what I would do, but IANAA...

- Create Assets:House(A:H) and Liabilities:Mortgage (L:M) accounts
- Xfer 20,000 from "cash" to A:H
- Xfer 230,000 (assuming that is the actual loan principal) from L:M to A:H

If you are charged PMI, this is an expense.
Insurance paid on the loan is also an expense.
Principal paid on the loan just transfers back to the liability
from your cash account.

-derek

"Andrew Z" <andyziem at acmemail.net> writes:

> What accounts and values does a person use if a he buys a house for $250,000 
> with a downpayment of $20,000?  Would he setup Assets:Home with a value of 
> $250,000 and Liabilities:Mortgage with a value of $230,000?  Is the value of 
> Assetts:Home transfered from Liabilities:Mortage?
> 
> What if he were charged a Mortgage Insurance Premium of $3,000 to his loan.  
> Would he transfer $3,000 from an expense account to the Liabilities:Mortgage?
> 
> Thanks.
> 
> 
> Andrew Z
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-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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