Finance

Jul 9 2017

Interest only loans – Quicken Community #6 #month #loans


#interest only loan
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Recommended answer

11:41 am PDT May 6, 2011

“I’m not sure why this message thread did not come up as a result (unless because you left the ‘L’ out of only)”.

“We” didn’t leave out the “L”, but I think you’re right that the missing “L” prevented your search from finding this discussion.

At the time this discussion began we (the other users who are the responders to posts here), did not have the capability to modify the posts by “askers”, so it would have required someone to ask Intuit to modify the content of a post, to change the mis-spelling. Things have changed since then: I have now changed the subject of this discussion to correctly spell “only”.

Assuming that you have all the loan criteria 100% correct; the only reason that following my original instructions in this discussion would not work, is if you have not given Quicken the correct payment amount (there is only one specific payment amount that will cause 100% of the payment to be applied to interest, for an interest only loan). When you use the correct payment amount, you can see that you have succeeded by looking at the Quicken created Payment Schedule – it will show that no pricipal is being reduced by any of the payments.

I have created many test “interest only” loans in many versions of Quicken. and never had a problem.

“What about ARMs, that start out interest only and then after the reset are amortized? Do we have to create a second loan file to handle that?”

Quicken is not going to allow you to create an ARM loan; the Quicken Loan Wizard only creates fixed-rate loans.  You can either modify the existing loan when the interest rate changes, or create a new loan (“account”, not “file”) when the interest rate changes.

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