Balancivo · Money in and out
Track a loan or mortgage
Set up a loan's rate and payment so payments split into principal, interest and escrow, and check the balance against the lender's statement.
Who can do this: Owners set up terms; owners and bookkeepers check lender statements.
Read the transcript
The Loans page shows each loan or mortgage, and what you owe today. Click Set up terms to tell Balancivo about the loan. Enter the yearly interest rate, your monthly payment, and any escrow included in it. Pick a category for the escrow, like insurance, and one for the interest. Click Save terms. Now you can see about how much of the next payment goes to principal, interest, and escrow. When the lender's statement comes, click Check against a lender statement. Enter the statement date and the principal balance. Balancivo tells you if your books match the lender. Click Record statement to keep a record of the check.
The Loans page shows each mortgage or loan, what's owed today, and how each payment divides. Principal lowers what's owed here and on the balance sheet; interest is an expense. Check the balance against each lender statement so your books agree with the lender.
Before you start
- Add the loan on the Accounts page with the type Loan, the date you start tracking it, and the principal balance owed that day. A new loan starts at zero: categorize the deposit of its proceeds to the loan.
Steps
- Go to Loans. Each loan shows its name and Owed today.
- Click Set up terms (or Edit terms to change them later).
- Fill in the terms. Enter the Interest rate (yearly %), like 6.5. Add the Monthly payment (optional) and Escrow in each payment (optional). If there's escrow, choose an Escrow category. Pick an Interest category, and add the Lender (optional).
- Click Save terms. The loan now shows its rate, payment, and about how the next payment splits into principal, interest and escrow. Its payments can now be split in Review.
- When a lender statement arrives, click Check against a lender statement.
- Enter the Statement date and the Principal balance on the statement. Balancivo shows its own balance for that date and says whether it Matches the lender or how much more or less the lender shows owed.
- Click Record statement to save the comparison. If there's a difference you can't trace, click Record and adjust the books to match instead.
Good to know
- This is a Plus plan feature. On Starter or Standard, the page shows what it does and how to upgrade. Free trials and charter subscribers have it. See Your free trial, plans and usage.
- A difference usually means interest figured differently, a payment not split yet, or a payment the lender hasn't received. Fix those first; adjust only what's left.
- Record and adjust the books to match posts a journal entry that moves the difference to the loan's interest category. It's available to owners and to bookkeepers allowed to post journal entries. If the statement's month is closed, reopen it first.
- Recorded statements are listed under Lender statements with the Lender balance, the Balancivo balance, the Difference, and whether it was Adjusted.
- Open Principal activity to see each change to what's owed.
- Don't import the lender's statements as transactions on the loan account: the payments already come from your bank account.
- Loans with terms aren't reconciled on the Reconcile page; this lender check takes its place.
- Escrow has to be less than the monthly payment. The statement date can't be in the future or before the loan's starting date.
- Only an owner can set up or change a loan's terms.