No subject

[Thomas Bullock]

On 2010-11-07, at 22:07, Dennis Powless wrote:

> I've read the guide about loans...
> 
> I have a mortgage.  I pay the P, I and escrow each month.]
> 
> When I set up the mortgage I have a mortgage company account
> (liability:MortgageXYZ), escrow (assets:MortgageXYZ Escrow) and
> interest accounts (Expenses:Mortgage interest).  I determined I need
> an asset account, (Assets:MortgageXYZ Property).
> 
> What do I do with the actual asset account?  I see in the guide I give
> it the total amount I paid for the house.... and how does thi play in
> the monthly payment...  Ie.  I pay 100 to interest, 10 to the mortgage
> principle and 4 to the escrow... for a total payment of 114.00 from
> the checking account.  How does the actual asset get affected?
> 
> 
> Or, is this not make sense?

I think I understand, but let me try to translate it into GnuCash terms to make sure:

(1) Initial mortgage setup
    Assets:MortgageXYZProperty Dr $100,000
    Liability:MortgageXYZ      Cr $100,000

(2) Monthly payment
    Expenses:MortgageInterest  Dr $    100
    Assets:MortgageXYZEscrow   Dr $      4
    Liability:MortgageXYZ      Dr $     10
    Assets:Checking            Cr $    114

So all you would need to do in GnuCash is enter (1) initially, then set up a monthly scheduled transaction to take care of (2) for you. Your Assets:MortgageXYZProperty account would remain untouched after the initial setup (1), except for home reno/depreciation and other pertinent events, as Alex Hill noted.

Hope this helps,

Yawar