Quicken opens the Loan Setup wizard to guide you through the process of setting up a loan.
Select the type of loan you want to set up. You can set up a loan to borrow money for yourself or to lend money to someone else. In either case, Quicken calculates the payments based on the rest of the information that you enter.
If you are lending money to others, you cannot include such a loan in the planning tools that come with Quicken (for example, the Retirement Planner and the Home Purchase Planner).
Select the account you want to link your loan payments to. To use a new account, click New Account and enter a name. Quicken creates the account for you.
If you've already created a liability account to track money you're borrowing or an asset account to track money you're lending, click Existing Account and select the name from the list.
Tell Quicken whether you've already made or received any payments on the loan, so Quicken can calculate your remaining payments.
Quicken calculates the remaining payments in different ways, depending on whether you've already made payments on the money you borrowed or not (or received payments on the money you lent).
Tell Quicken the date you opened the loan and the original amount of the loan.
If your loan is:
Tell Quicken if this loan includes a balloon payment at the end.
In some balloon payment loans, each payment covers only the accrued interest (without affecting the principal), and the original loan amount is due at the end of the repayment period. This is a nonamortized, or interest-only, loan. If you have an interest-only loan:
This screen appears if you indicated previously that this loan has a balloon payment. In this step, Quicken needs to know the amortized length of the loan. (If you do not have a balloon payment, go to the next step.)
Tell Quicken how often you make payments.
Click the drop-down list and select the standard period that matches your loan. Semimonthly payments are due twice a month. Bi-monthly payments are due every other month.
If none of the Standard Period settings match your loan, select Other Period and enter the number of payments required per year.
Tell Quicken how often your loan is compounded. Select Daily, Monthly, or Semi-Annually from the drop-down list.
The compounding period affects how much interest is owed on a loan. The more frequently the interest is calculated, the higher the total interest is.
Tell Quicken whether or not you know the current balance of your loan.
The current balance on the loan is the total amount you still owe. If you don't know how much you owe, click No. Otherwise, click Yes to see a page where you can enter the date and the amount.
Enter the date the next payment is due.
You can enter the date or click the pop-up calendar to the right of the field and use it to choose the date.
Tell Quicken whether or not you know the amount of your next payment.
The amount of the next payment refers to the total principal and interest combined. If you don't know this amount, click No. Otherwise, click Yes to see a page where you can fill in the amount.
If this is an interest-only loan, click Yes and enter the payment amount in the next page.
Confirm that the information you entered is correct.
Quicken displays the Set Up Loan Payment dialog.
Quicken displays your loan in the Property & Debt Center.
If you used the amortization feature in Quicken 1 or Quicken 2 for Windows but didn't set up an account for tracking principal, Quicken for Windows now sets up the account for you. Quicken enters the correct opening balance and current balance according to the amortized state of your loan.