Mortgage Payments as Transfers

BlueGrits

I see that my credit card payments are treated as transfers, but mortgage payments (both monthly and additional principle) are not. Am I doing something wrong or is that how it should be?

Coach Natalie

@BlueGrits, thanks for posting your inquiry to the Community!

I would definitely consider a mortgage payment an expense, just like I would a rent payment. The reason credit card payments are considered "transfers" is because you've already tracked the spending in the credit card account, so the transfer of funds to cover those expenses should not also be counted as an expense.

I hope this helps!

DryHeat

@BlueGrits

How this works — transfer or expense — depends on whether you have a mortgage account set up in Simplifi representing the debt you owe on the mortgage.

Mortgage payments often include PITI (Principle, Interest, Taxes, Insurance). If you have a mortgage account in Simplifi, then the "P" portion of your mortgage payment (and any "additional principle" payment) can be treated as a transfer to that mortgage account, thus reducing the debt. The "ITI" portions are expenses.

But many people do not track their mortgage in Simplifi, so there is no debt account to be used for the transfer. In that case, you would probably just categorize the "P" portion as a mortgage expense as @Coach Natalie says.