Mortgage Questions -- Escrow handling

[Dawning Sky]

On 4/24/07, Tommy Trussell <tommy.trussell at gmail.com> wrote:
> I've been using GnuCash for awhile now... so far so good. (I'm still
> on 1.8.12 in Ubuntu Dapper but I'll be able to upgrade to a 2.x
> version soon.)
>
> I decided to start having Gnucash track my home mortgage, but the
> Druid is being a little TOO smart and I can't tell how to fix it. I
> think I will have to figure out the formulas and enter them myself,
> because the numbers are not coming out right.
>
> I don't care about tracking the exact amounts before 1/1/2007, so I
> reconciled my escrow account and my principal account against the end
> of year 2006 statement from the mortgage company, and adjusted the
> payments I've already logged for 2007 so they reflect the actual
> interest, principal, escrow and additional monthly principal I have
> paid each month. (I figured it would help the druid calculate the
> correct amounts.)
>
> I let the druid set up the mortgage, which goes back to 1 October 2005
>
> HOWEVER it's being TOO tricky... The druid sets up the scheduled
> payments for the accounts INCLUDING the Escrow using a formula.
> HOWEVER in practice, I pay whatever escrow amount the bank says I
> should because they keep a minimum balance in escrow based on some
> formula and analysis of my actual property tax and insurance payments
> they pay out of escrow. I also pay an additional principal amount
> every month, SO the principal and interest will vary more every month.
>
> So I'd rather the druid suggest a fixed monthly amount for the escrow
> and let me adjust it. I tried to edit the scheduled transaction to
> some fixed amounts for the escrow and for the single total amount
> transferred from my checking account each month, but nothing doing --
> the transaction editor wouldn't let me change any of the formulas to a
> fixed amount.
>
> I just want to avoid having to twiddle the amounts each month.
>
> I am probably making this too complicated, and maybe I just need to
> ditch the druid and enter some formulas in the scheduled transaction
> editor by hand. Recommendations?
>

AFAIK, Gnucash's Loan Repayment Calculation cannot handle extra
principal payment.

If you just want to set-up a scheduled fix-amount transfer from your
checking to your escrow, you don't need to use the Mortgate Druid.
The scheduled transaction editor is enough.

DS