[GNC] What account name do you use to record the apartment/house expenses related to the building?

[Michael or Penny Novack]

>> or more expenses (at least interest; maybe insurance, fees, and others
>> depending on the terms of the loan) and principal payment that reduces the
>> loan amount. Property owners also need to distinguish between maintenance
>> and improvements: The latter increase the value of the property, the former
>> are an expense.

Mortgage payments usually just principle, interest, and escrow (payments 
into an asset account being held for you by the mortgage company from 
which taxes, insurance, etc. are paid. You possibly will not know the 
dates and amounts of those transactions (for example debit RE Tax, 
credit escrow) until you get your annual escrow review statement. At 
least it was that way in the old days of pen and ink on paper.

Wrong to consider what is going into escrow a current expense. The 
amount they calculate you must pay into escrow each month is enough to 
keep the balance in that account positive at all times throughout the 
year << as various amounts go out for RE tax, insurance, etc. >> In 
other words, the amount you must pay into escrow will usually change 
annually based on the current balance in the account, and the dates and 
amounts payments from the account will be made. NOT simply add up annual 
taxes, insurance, etc. and divided by twelve!

Michael D Novack

PS -- This may be dependent on jurisdiction, but so far those were the 
rules in the states in which I have lived/had a mortgage.