Setting up mortgage payments

Liz edodd at billiau.net
Wed Jan 9 14:35:23 EST 2013


On Wed, 09 Jan 2013 12:58:44 -0500
Mike or Penny Novack <stepbystepfarm at mtdata.com> wrote:

> 
> >Okay.  As I said in my previous email, gnucash cannot handle the
> >interest rate changing more often than the payments. 
> >
> >  
> >
> Perhaps worth a comment that this is NOT a limitation just for
> gnucash. If you think about, no computerized system nor even any
> human system can IN ADVANCE specify a future transaction when the
> amounts are not finally determined (in this case interest rate might
> or might not change) between the time specified and the date due. You
> have to wait and find out what the (actual) amounts were.
> 
> The problem isn't simply that the rates change more often than the 
> period (gnucash can't handle that) but that any such changes aren't 
> defined until they occur (nothing can handle that). I am assuming
> here that what you mean is that the rates are adjusted according to
> changes in the money market. ROFLOL if I had software capable of
> correctly predicting THAT in advance I wouldn't be using it just for
> an accounting package.
> 
> Michael
> 

I think this thread started with an explanation about the escrow
system, which is just as strange to those of us not using it. We were
curious concerning the need for some people to know exactly what
amounts went to the principal, interest and escrow accounts on their
mortgage.
Over a number of mortgages I have left the interest calculation to the
lender. I am aware that some people are charged interest in excess of
their contracts.
http://www.ihatebanks.com.au/behave.htm
and even recently
http://blogs.abc.net.au/queensland/2012/10/bank-of-queensland-refunds-mortgage-overcharges.html


Programs for checking your mortgage repayments suitable for Australia
are on sale. The calculations are not easy for pen and paper work, but
easily computerised. Prediction isn't required, so Mike doesn't need a
crystal ball, but there would be some interest in checking after the
event.


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