Mortgage payments

[Nils Brouer]

Hi,

I  am looking for a way to enter certain mortgages in Gnucash.

 

I have looked at the manual, online help and the mailing list archives, but
not found the answer to my question.

 

As far as I understand, the wizard allows you to enter interest in %, total
amount and number of months until payback completed. However, I have a
mortgage where I know the interest and monthly payback of the mortgage, thus
the total amount that I have to pay. However, the total number of months
until payback completed is not an integer, or rather the final payment will
be smaller than the ones before.

Example: if the mortgage is $100,000 with interest of 6% I will pay $500
interest per month (initially). I pay another $250 to pay back the loan for
a total of $750. After 221 months, the mortgage will be paid back. However,
the last payment will be less than $750.

If I enter the amount of $100k and 6% interest together with 221 months in
the  mortgage wizard, I get a monthly payment of $748.64. With 220 months it
will be $750,51. How do I get Gnucash to reflect the $750 that I am paying?

 

Also, related question: if - after 10 months - I have some extra money and I
use this to pay back some more of my debt (on top of the monthly $750), the
amount of interest to be paid will be reduced vs. the initial plan. Will
Gnucash take this into account?

 

Thanks in advance for any hint!

Regards

Nils