Tell me more about setting up a loan with this wizard.Tell me more about setting up a loan with this wizard.
For each loan you set up, Money automatically calculates the principal (What you still owe or are owed on a loan.) and interest (The cost of borrowed money. Interest payments do not reduce principal on a loan.) breakdown of each payment and keeps track of the balance due. From the New Loan Account wizard, you can set up recurring payments that will remind you when payments are due and make entering your payment almost automatic. Also, you can associate an asset with the loan to offset the debt.
When setting up a loan account, you can omit one value in the calculation section and have Money calculate it for you. For example, if you don't know how much the Principal + Interest amount is, leave it blank. Based on the other numbers you enter, Money will calculate it for you.
1 Have your loan documents handy.
How do I create an amortization report for this loan?
When you create a loan account, you automatically create a loan-payment record, or amortization (A plan that enables a borrower to pay off a debt, such as a mortgage, gradually through periodic payments of principal and interest.) schedule. Money also automatically calculates the principal (What you still owe or are owed on a loan.) and interest (The cost of borrowed money. Interest payments do not reduce principal on a loan.) breakdown of each payment and keeps track of the balance due.
What if I donÆt know all the amounts the wizard asks me for?
While setting up the loan, you can leave one value blank and Money will calculate it for you. For example, if you don't know the Principal + Interest amount, leave it blank and Money will calculate it automatically.
How do I set up a personal loan?
When you want to keep track of a non-amortized loan, such as an interest-only loan, a loan to a friend or relative, or a credit card advance, you'll need to set up a liability account, an asset account, or a credit card account. For more information, see Learn about loan accounts.