[GNC] Budgeting loans

[Dale Alspach]

I think something like the following will work.

You need to create two off-setting accounts: Mortgage Payable
(liability) and a sub-account Mortgage Payment (asset).
You would not budget Mortgage Payable, Mortgage Interest (expense) or
Mortgage (liability).
A typical payment transaction where the payment is $1000 = $200
principal plus $800 interest would be
Credit Checking $1000
Debit Mortgage $200
Debit Mortgage Interest $800
Debit Mortgage Payable $1000
Credit Mortgage Payment $1000.

If your lender has given you a schedule with breakdown of each payment
or you use schedule transactions then you may want to enter this as two
transactions.
Debit Mortgage $200
Debit Mortgage Interest $800
Credit Mortgage Payment $1000

Credit Checking $1000
Debit Mortgage Payable $1000

Dale

On 04/06/2018 10:12 PM, Andy Pastuszak wrote:
> Budget it to what account?
> 
> Andy
> 
> On Fri, Apr 6, 2018 at 11:09 PM, Dale Alspach <alspachde at gmail.com
> <mailto:alspachde at gmail.com>> wrote:
> 
>     I suggest just budgeting the total payment. Most budgeting issues are
>     actually cash flow so the total payment is the important number.
> 
>     Dale
> 
>     On 04/06/2018 09:07 PM, Andy Pastuszak wrote:
>     > I came up with an idea.  I created and asset account called Mortgage
>     > Payment, and do a transfer of my monthly mortgage payment to that
>     account.
>     > In that account register, I do 2 transactions, one that pays the
>     mortgage
>     > and one that pays the principal.  Need to tinker and see how this
>     works for
>     > budgeting.
>     >
>     > On Fri, Apr 6, 2018 at 9:22 PM, Andy Pastuszak
>     <apastuszak at gmail.com <mailto:apastuszak at gmail.com>> wrote:
>     >
>     >> I'm trying to find the best way to budget a loan.  The principal and
>     >> interest of the loan changes every month as you make payments, so
>     it's kind
>     >> of tough to budget them without being forced to adjust the budget
>     amount
>     >> every single month.  Is there some kind of "best practice" for
>     budgeting
>     >> loans?
>     >>
>     >> Andy Pastuszak
>     >>
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