Mortgage Transactions (Principle, Interest, and Escrow)

Dick_Davis

How can the mortgage payment (principle, interest and escrow) be recorded? (I’m still trying to understand the double entry accounting). Attached is what I currently have in Simplifi.

Screenshot 2025-06-11 214954.png

DryHeat

@Dick_Davis

There is a very similar discussion here:

https://community.simplifimoney.com/discussion/12697/mortgage-payments-as-transfers

If you search the discussions for "mortgage" you may find more information.

SRC54

Most users do it the Simple way as outlined in the cited discussion above. But from your screenshot, it appears you have split your mortgage payment transaction. I assume you have split it among a liability mortgage account, an asset escrow account and a mortgage interest expense category. If so, you have done it correctly from an accounting standpoint. I also see that the split transaction is visible in the Spending Plan and Reports, which is correct also. (If you have a transfer in a split transaction, I believe Simplifi hides it by default from Reports and Spending Plan).

Then again you might just have Mortgage Payment, Escrow and Interest as expense categories, which will work also so that you can see annually how much you paid into the 3. Assuming that all of the Escrow goes to Property Tax, you can list that as a Tax, but usually there is some adjustment annually to that, you'll have to check.

You have a lot of individual flexibility into how much detail you want to go into with Simplifi.