[GNC] Loan with overpayments

[Stephen M. Butler]

On 2/21/20 8:56 AM, Claire via gnucash-user wrote:
> Hello
> I have a loan at a fixed interest rate and was planning to use "Loan and Mortgage Repayment...". However I do have the option to make overpayments.
> I checked this mailing list and there was a thread regarding mortgages in 2013 which said that the SX uses the original amount to calculate interest not the current balance. Is this still the case?
> If that is the case is there any manual workaround I can do to get it to calculate the interest correctly?
> Claire

I get a statement each month in advance that shows the interest portion
applicable to the next payment (it also shows the amount going to
principle and the escrow amount).  So I manually update the scheduled
transaction each month.  If I forget, it is simple to go back to the
posted transaction and edit it also.  The statement also shows the
amounts applied from the last payment along with the resulting balance. 
This allows me to cross check my version of the balance (loan and
escrow) to verify all is correct on my side.

So, this is the manual work around.  Although it doesn't calculate the
interest for you, it does allow you to use what the lender states is the
interest they will charge for that payment.

Now, if you don't get a monthly statement -- you will need to set up a
loan amortization schedule in a spread sheet with a column for the extra
payments.  I've find that I'm usually right on and always within a penny
of what the bank/lender calculates (unless they use the actual days to
when the payment was applied).  However, most lenders will use a
standard month.

--Steve

-- 
Stephen M Butler, PMP, PSM
Stephen.M.Butler51 at gmail.com
kg7je at arrl.net
253-350-0166
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