How to enter an existing loan

[Joe Hildreth]

My wife and I are wanting to use GNUCash to track our personal finances.  The checking, savings and money market accounts were simple enough.  Our question is our home mortgage.

I am thinking that I need the following

Asset:
   Purchased Assets

Liability:
   Home Mortgage

Equity:
   Home Equity

Expense:
   Interest Paid

then set up the transaction for the loan as follows as follows:

Purchased Assets: = Value of house
Home Mortgage = Current Principal on loan
Home Equity = Principal paid on loan at this time

When I make a payment the transaction like this:

Home mortgage = principal payment on loan
Interest paid = interest payment on loan.

I am not a finance guy by any stretch of the imagination so I am open to explanation or criticism.  Does this look like an acceptable way to set an existing home mortgage up?  Thank you for your time.  :-)

Warm Regards,

Joe Hildreth