Tracking Mortgage using Microsoft Money

jasmin10

I have MS Money 2005 and am wanting to set up my mortgage on it. When entering the initial details it asks for a balloon rate? Does anyone know what this is or step by step instructions on how to do it.

I have gone though the following:

"How often is interested calculated" Mine is daily but there is no option for this. I have Based on Payment Due, Based on when lender receives payment or Twice a year. I chose based on payment Due.

"Remaining loan amount" inputted 89589.76
"Interest Rate" entered the correct rate 2.64%
"Loan Length" entered 23 years
"Enter Principle plus interest " was stuck on what to put so entered through
"Balloon Rate: again at a loss.

It says that I only need to enter in one field of either principle rate or balloon rate and it will work it out for me but as I haven't a clue on what they mean I can't do it.

Would anyone be able to assist please.

Trying_to_be_good

The 'balloon' amount (not a rate) is the amount of money you will owe at the end of the mortgage term - i.e. the amount that's borrowed on interest only terms, rather than repayment.

You're right - enter the current balance, interest rate, loan length, leave the 'principle plus interest' blank to get it to enter that, and if the mortgage is a repayment one, enter 0 for the balloon amount. If there is an amount that's interest only, enter that amount.

jasmin10

brilliant I will try that. So if the balloon amount is zero it will work it out correctly as a repayment mortgage?

jasmin10

I have done it as above but the amounts are still £10 out. Is this because is can't work it out exactly? My payments are 423.60 but it works it out to be 436.82. Obviously it's only a few pound but overall the remaining balance shows quite a difference.

Trying_to_be_good

Check your numbers - Excel's pmt function gives a monthly payment of £433. To get your monthly figure, the balance outstanding should be £87,562.37, or the term outstanding about 23 years 9 months.

If your numbers are right, leave the amount outstanding as blank, and enter all the other numbers including your monthly payment (still baloon zero). It'll be a figure close enough to not worry about!

jasmin10

Wonderful, a few pound either way is as close as damn it. Thank you for your help.