[GNC] Mortgage & Loan Repayment Assistant woes

[Jean Laroche]

The fact that the interest amount is twice as much seems to indicate to 
me that GC does not do the proper calculation given your every-two-week 
frequency.
That would happen I think if GC thought you're paying your mortgage 
every month instead of every two-weeks.

Could you try doing the same with a monthly schedule, instead of 
two-week schedule and see if what you get seems right?
That would help debug the issue.
Jean

On 9/16/21 10:31 AM, Chris Mitchell wrote:
> Hi all,
>
> I can't seem to get my mortgage repayment scheduled transactions set up
> correctly, even though I *think* my mortgage is pretty close to the
> simplest possible case.
>
> * It's a fixed interest rate;
> * The payments are only principal & interest, no tax/escrow/etc;
> * Every two weeks I make a blended payment with a known, fixed total
>    amount;
> * I have from my bank a schedule of payments so far this year,
>    projected payments, balance after every payment, etc
>
> On the Loan Details page, I select the mortgage account, enter the
> current balance remaining in the "Amount" field, and enter the interest
> rate (selecting "Interest rate" and type "Fixed" on the accompanying
> dropdowns). For the start date I put in today's date, for both "Length"
> and "Months remaining" I provide what Libreoffice Calc's "Months"
> function tells me is the number of months between today and the "Ending
> Date" listed on the mortgage paperwork from my bank.
>
> On Loan Repayment Options, no boxes are checked off.
>
> On Loan Repayment, I give the transaction a name and select the
> appropriate accounts for where the payment comes from and where the
> interest goes, then specify the frequency (every 2 weeks, on Thursday,
> starting today). The "Amount" field is a non-editable display showing a
> formula that I don't understand, namely:
> pmt( [MyInterestRate/100] / 12.00 : [MyMonthsRemaining].00 :
> [MyPresentBalance] : 0 : 0 )
>
> (Actual loan details redacted)
>
> I recognize the values it asked me for, so that's good I guess. At no
> point thus far do I see anything that I recognize as a place to enter
> my *actual payment* amount, which strikes me as surprising.
>
> Then I click "Next" and look at the list of generated payments. The
> overall payment amount showing here is a little over three times my
> actual payment amount, with the interest portion close to (but not
> exactly) twice what it should be.
>
> I assume Gnucash is doing the underlying math right, so the result
> being so thoroughly wrong would seem to imply that I'm doing something
> terribly wrong in the entry process. I've done it three times, double-
> and triple-checked my values against the bank paperwork, and I'm
> stumped.
>
> Any help to get my scheduled transaction set up correctly without
> having to go learn the whole "fundamental financial equation" business
> (https://code.gnucash.org/docs/C/gnucash-guide/loans_calcs1.html) would
> be gratefully welcomed.
>
> Cheers!
>   -Chris
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