[GNC] Mortgage & Loan Repayment schedule tool

David Carlson david.carlson.417 at gmail.com
Sat Jan 11 18:28:51 EST 2020


Don,

I think that the mortgage tool should not have a problem with fixed amount
lines like escrow.  There must be extra lines in the SX transaction that
was created by the tool.  You can manually edit that SX transaction after
it has been entered once into the register or alternatively in the SX
editor from the SX list.  If I had escrow in my mortgage payment I would
have separate transactions to document the respective payments, which would
make the Escrow asset account balance accurate at all times.

One of the minor annoyances of GnuCash is that it is hard to get to the SX
editor for a particular SX until after it has been entered into the
register at least once.

David Carlson

On Sat, Jan 11, 2020 at 3:54 PM Don Ireland <gnuCash at donireland.com> wrote:

> Thanks.  I really understood that --  there are lots of variables that can
> alter the interest versus principal portions of rhe payment (such as thr
> payment was processed at the bank on the 15th but you entered it into the
> system on the 20th.  You now have 5 extra days of interest).
>
> But that's not what I was asking about.  I'll say it again.  The recurring
> transactions created by the tool created transactions crediting the escrow
> account for the insurance & taxes and debiting the escrow account to
> transfer the money to the taxes and insurance accounts.  So now the total
> amount it takes from the account is equal to JUST THE P&I.
>
> I ended up fixing it by entering it manually.
>
> On January 11, 2020 2:26:08 PM CST, Michael or Penny Novack <
> stepbystepfarm at comcast.net> wrote:
> >Do not fault the tool if it does not agree with the bank. I have
> >written
> >these things. There are simply too many assumption about how to do the
> >calculation, where to round off, etc. << I ended up with a fancy
> >version
> >that allowed instructions where to adjust that could get agreement to a
> >
> >penny BUT it was not strictly speaking a "function" (a calculation) but
> >
> >a process using a repeated "trial and error" approach not unlike
> >Newton's Method --- lenders frequently charge for an "amortization
> >table" and I wanted to have that to be able to make additional payments
> >
> >of principle*.
> >
> >As for escrow amount calculation, this is really tricky. The bank will
> >set an amount to fund an amount that will not only be sufficient to pay
> >
> >the taxes and insurance bills over the year but will do so on a "cash
> >flow" basis. In other words, the fund will always have enough in it to
> >meet these bills when they are due. The bank will recalculate ever year
> >
> >but based on the dates of the expected bills will tend to fluctuate
> >more
> >wildly than you expect**. I never wrote one of these, but again, a good
> >
> >candidate for repeated "trial and error*"
> >
> >Michael D Novack
> >
> >
> >* If the amount you send in is the exact amount of the principle
> >portion
> >of the following payment then you can cross that payment off -- in
> >effect you are jumping closer to the end of the mortgage. Especially
> >when interest rates are high, as they were at the time, in early years
> >you can cheaply buy time off the end of the mortgage.
> >
> >**( In other words, given an initial balance (in escrow) and making a
> >series of payments at specified dates (the tax and insurance due dates
> >and amounts) what is the least monthly input (or biweekly if that's
> >what
> >the mortgage payments are) that will prevent the escrow amount from
> >going minus.)
> >
> >
> >_______________________________________________
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>
> Don Ireland
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-- 
David Carlson


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