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Background Information about Loans

When you create a loan account Moneydance will ask you for information about the loan from which it will calculate the payment schedule. It is up to you to manage the payment schedule, Moneydance will only calculate the amount of the net payment. You do this via a Reminder.

The fields that you need to enter are described in the User Guide which can be found here User Guide.

For the payments to be entered you need to create a Reminder. This reminder will contain the correct transactions for your loan. You will need to identify the account from which the payment will come. Moneydance then calculates the transactions as follow:

• A debit for the whole payment from the account you identified
• A credit for the principal amount to the loan account
• A credit to the interest category you identified of the interest amount plus any amount for the points if entered
• A credit to the Escrow account for the amount you identified

The payment schedule you set up needs to match the Payments per Year parameter. Each time a payment becomes due, Moneydance will recalculate the payments and make the next payment due.

If You do not match the reminders to the payment schedule the loan will not mature on the correct date.

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