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Posted by scott s. on February 3, 2007, 4:44 am
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>>
> No 'guesswork' - just an implementation of programming for a dynamic
> (i.e. changing) decision making capability. Again, certainly 'doable',
> but probably not practical.
You keep saying "decision making" but there isn't any decision. You
compute the interest as of the date of the transaction. I'm not
expecting Quicken to make a decision about when the transaction
should be posted, just that it properly compute the interest. This
isn't some esoteric loan; it is a standard consumer loan I got from
Bank of America.
scott s.
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Posted by Bob Wang on January 30, 2007, 3:22 pm
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Lisa:
Pardon me for asking what could be a stupid question;
Is the compounding period of your loan set up in Quicken as Daily instead of
the default of Monthly?
Bob
>>>
When I set up a loan (and set up the loan payments), it appears that Quicken
*DOES NOT* adjust the Interest-Principle split according to my payment
date...instead, it uses (apparently) the value that it has already calcuted
for the split, assuming that the payment posts to the loan account exactly
on the due date.
In case that doesn't make sense...let me clarify:
If I make my payment a week early, then less interest has accrued, and
therefore more of my payment goes to principle. So, If I change the payment
date when entering my scheduled payment in Quicken, then I expect Quicken to
adjust the split. However, as far as I can tell, Quicken does not do this.
What this means, is that every time I make a payment, the split is wrong,
and I have to go in and manually change the values for the split, so that my
remaining principal balance is accurate.
Am I overlooking something here? Does Quicken not have the ability to
properly calculate the interest based on the acual payment date?
I am using Quicken 2006...maybe this is fixed in 2007?
Lisa B.
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Posted by scott s. on January 31, 2007, 2:44 pm
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> Lisa:
>
> Pardon me for asking what could be a stupid question;
>
> Is the compounding period of your loan set up in Quicken as Daily
> instead of the default of Monthly?
I'm not Lisa, but yes, in my case the compounding period is set
as daily, but that isn't the problem. It only computes the
amortization based on monthly payment, maybe using the 360 rule.
If you always make the payment on the exact day, then the computed
interest would be correct. I think that is the sam problem as
Lisa is having.
scott s.
.
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Posted by L on January 31, 2007, 3:03 pm
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>> Lisa:
>>
>> Pardon me for asking what could be a stupid question;
>>
>> Is the compounding period of your loan set up in Quicken as Daily
>> instead of the default of Monthly?
>
> I'm not Lisa, but yes, in my case the compounding period is set
> as daily, but that isn't the problem. It only computes the
> amortization based on monthly payment, maybe using the 360 rule.
It would be more precise to say it computes the amortization based on the
pay periods entered when setting up the loan. That is, you give the software
information as to principal amount, interest rate, and compounding period,
and Quicken sets up an amortization schedule based on those variables. The
payments from the amortization calculation can be scheduled and entered
automatically.
> If you always make the payment on the exact day, then the computed
> interest would be correct. I think that is the sam problem as
> Lisa is having.
>
Yes, it is. And it is not a bug.
What you are both asking for is a program that does DYNAMIC calculations for
payments based on variable payment dates. While it is certainly possible for
this type of calculation to be done (otherwise, your bank would not be able
to accurately calculate your interest each month) it is probably not
practical to program within a personal finances program. Within the
framework of Quicken, for example, the program would have to examine EACH
scheduled transaction to check if it had a loan attached, and recalculate
interest base, not on the amortization schedule, but on a variable date.
Even if Quicken COULD do that, however, it would still not match the bank
statement. Why? Because the bank will calculate what is owed based on the
date RECEIVED, not the date PAID.
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Posted by BeanTownSteve on January 31, 2007, 9:41 am
Please log in for more thread options > When I set up a loan (and set up the loan payments), it appears that Quicken
> *DOES NOT* adjust the Interest-Principle split according to my payment
> date...instead, it uses (apparently) the value that it has already calcuted
> for the split, assuming that the payment posts to the loan account exactly
> on the due date.
>
<snip>
In most common loans, the payment due date defines the amount of
interest accrued and payable. While I'm not sure
about other loans, but mortgages have a "grace" period for each
payment and a delay in payment is still the same principal and
interest split.
Going into late periods changes the payment because not only may the
split change, it also adds late charges.
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