Tracking Mortgage Payoff?

5impl5abi
5impl5abi Member
edited July 12 in Troubleshooting
I looked through the forum, yet didn't find suggestions on how best to track ones mortgage payoff (aka debt payoff, load payoff), so asking the community for guidance...

Today, I'm using four disconnected areas in Simplifi to manage my mortgage:
1. Debt Account manually updated monthly to track the outstanding balance
2. Spending Plan to allocate monthly mortgage payments based on the Savings Goal 
3. Checking Account to manage the projected monthly payments
4. Savings Goal to with a manually updated amount which I adjust down every couple of months since there's no account to connect it to. 

Only the Savings Goal and Spending Plan are integrated in Simplifi, unfortunately. 

There has to be a better way. What's the best way you've found to track paying off your mortgage in Simplifi?Please share! 

Best Answers

  • Coach Natalie
    Coach Natalie Administrator, Moderator admin
    Answer ✓
    Hello @5impl5abi,

    Thanks for posting your inquiry to the Community!

    Hopefully other users come along with some great feedback and advice on how they handle this type of situation in Simplifi, however, based on your description, it sounds like you've found a pretty good method for managing this in Simplifi despite some of the features being disconnected. 

    I also found a couple of existing Idea posts involving debt payoff that you may be interested in adding your vote and feedback to. :smile:

    https://community.simplifimoney.com/discussion/440/debt-snowball#latest

    https://community.simplifimoney.com/discussion/626/debt-tracking-on-a-graph-edited/p1?new=1

    -Coach Natalie
  • DannyB
    DannyB Superuser ✭✭✭✭
    Answer ✓
    Hi @5impl5abi
    I don't have a mortgage since we paid it off a couple of years ago.  But I played around a little with setting up a manual test mortgage account and added manually added a test payment to my checking account to see how it went.

    A few clarifying questions:
    1. Can you connect your mortgage holder to Simplifi? If not can you download your account transactions in a format that Simplifi can import?  I'm guessing you can't since it sounds like you set up a manual debt account for your mortgage.
    2. Why do you have a Savings goal set up for your mortgage payment?  I think you could streamline this process by making your mortgage a recurring bill instead of a Savings goal.
    3. How do you sort out the various components that make up your monthly payment, principle, interest, taxes and insurance (if you have an escrow account for these last two)?

    A few thoughts:
    1. Instead of a savings goal, I would think it would be easier and more efficient to set up a recurring bill based on the payment out of your checking account.
    2. When you set up the recurring payment as a bill you can split the total into the various categories.  By doing this the amount that goes to principal will be transferred to your the account  you set up for your mortgage company.  The interest part of the payment can go to an Interest or Mortgage Interest category you create perhaps as a subcategory in whatever category you track you housing expenses.  If you have an escrow account, you could create either an expense category or another manual account to assign that portion of your payment to. 
    3. Since this is now a recurring bill in Simplifi, whenever you make your payment out of your checking account and that transaction is downloaded into Simplifi, Simplifi will automatically split the payment and update your mortgage account balance.
    This is just my thinking about your questions.  It seems to me that this way of approaching a mortgage payment is more efficient then what it appears you are doing now. 

    Again, I don't have a mortgage so I haven't tried any of this except for that experimentation I mentioned above.  I'm going to bookmark this post so I can see what other's have to say about your question.
    Danny 
    Simplifi user since 01/22
     Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
  • Coach Natalie
    Coach Natalie Administrator, Moderator admin
    Answer ✓
    Thanks so much for the suggestions and feedback @DannyB!

    I did want to clarify just one point that you made -- the ability to split Recurring Series' is not currently supported in Simplifi, so you'll want to manually split the transaction before linking it to the Recurring Bill. More details on this can be found in this #TipTuesday: https://community.simplifimoney.com/discussion/2936/tiptuesday-using-splits-in-the-spending-plan#latest

    Also, please be sure to add your vote and feedback here for the ability to use splits when setting up Recurring Series' if you'd like to see this added to Simplifi: https://community.simplifimoney.com/discussion/98/using-splits-multiple-categories-in-recurring-transactions/p1?new=1

    Let me know if you have any questions!

    -Coach Natalie

Answers

  • DannyB
    DannyB Superuser ✭✭✭✭
    @Coach Natalie thanks for the clarification.  I meant to mention the problem with split transactions in recurring transactions.  I was also thinking that having one of the splits as a transfer might create a problem for how Simplifi would handle this.
    Danny 
    Simplifi user since 01/22
     Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
  • Coach Natalie
    Coach Natalie Administrator, Moderator admin
    That's right, @DannyB -- since you can't ignore part of a split transaction from the Spending Plan, you'll see the 'transfers' included there as well. This article has more details: http://help.simplifimoney.com/en/articles/3569626-how-to-ignore-transactions-from-reports-and-the-spending-plan :smile:

    -Coach Natalie
  • 5impl5abi
    5impl5abi Member
    Dear @DannyB, thanks so much for taking the time to share your insights--very much appreciated!

    Let's answer your questions:
    1. Can you connect your mortgage holder to Simplifi? No. I've requested the company be added, but it's been almost a year and still waiting. :/
    2. Why do you have a Savings goal set up for your mortgage payment?  I think you could streamline this process by making your mortgage a recurring bill instead of a Savings goal. Excellent observation. I'm using both a Recurring Bill and a Savings Goal. The Recurring Bill serves are the monthly placeholder for the upcoming checking account withdrawal, but what I really want is to track the paying off of this mortgage loan debt. A Recurring Bill doesn't provide that satisfaction. :/
    3. How do you sort out the various components that make up your monthly payment, principle, interest, taxes and insurance (if you have an escrow account for these last two)? While I'd love to, I am not tracking the principal, interest, taxes, etc, separately. That'd be great, but I haven't found an easy/elegant way to do that within Simplifi. So, I'm just playing the bill off.
    It seems a mortgage loan paydown tracking isn't really happening by the Simplifi community. 

    @DannyB - you're the best!


  • DannyB
    DannyB Superuser ✭✭✭✭
    Hey, @5impl5abi, your welcome.  I enjoy engaging with other Simplifiers in this forum.  I am a bit surprised there hasn't been more response to your question.  I agree that there doesn't seem to be an easy/elegant way to track a mortgage payment in Simplifi at this time.  Maybe in the future this will be addressed.

    Whether or not a particular bank or financial institution connects with Simplifi, in my understanding, has to do with whether or not that institution cooperates with the aggregator Simplifi uses or any other aggregator for that matter.  Might be worthwhile to contact your mortgage company to ask them to allow connections to aggregator.

    I was a long time user of Microsoft Money then switched to Quicken when MS Money went away.  Both had sophisticated debt/asset handling including the ability to connect a debt account with an asset account i.e. a mortgage account with an asset account for your house thus allowing you to track your equity.  Quicken and it's like attempt to be comprehensive long range financial management and planning apps and to that end they offer a lot of tools including the ability to track such things a mortgage payoff schedules with a what if tool.

    The shift from the comprehensive, broad based approach of Quicken to the focused, streamlined approach of Simplifi has been interesting and educational.  Whereas Quicken offers budgeting tools, it is really a long range, distant horizon tool.  Simplifi, on the other hand, is a more immediately focused short horizon tool.  Simplifi has caused me to adjust my expectations and focus on what I'm really wanting to accomplish with a financial management app.  Right now Simplifi is a much better fit for me then continuing to use Quicken.

    I certainly see room for continued development of Simplifi and there are some features I truly hope will become part of Simplifi, but I don't expect or want it to become something like Quicken.  
    Danny 
    Simplifi user since 01/22
     Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
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