How to create and use a home mortgage escrow account in Microsoft Money (899623)

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Important We recommend that you back up the Microsoft Money data file before you create a new account. To back up the Money file, click Back Up on the File menu.

Create an escrow account

To create an escrow account, follow the steps for the version of Money that you are using.

Money 2005 and later versions

1. On the File menu, point to New, and then click New Account.
2. Click Other account type (such as loan, asset, or watch accounts), and then click Next.
3. Click Other in the account type list, and then click Next.
4. Click Track transactions and other details, and then click Next.
5. Type Escrow Account as the name of the account, and then click Next two times.
6. Type the account balance, click the type of currency that you want to use, and then click Finish.

Money 2004 and Money 2003

1. On the Accounts & Bills menu, click Account Setup, and then click Add a new account.
2. Click Not held at a bank, broker, or other financial institution, and then click Next.
3. Click Other in the account type list, and then click Next.
4. Type Escrow Account as the name of the account, and then click Next.
5. Type the account balance, click the type of currency that you want to use, and then click Finish.

After you create the escrow account, you can track the escrow payments in the account.

Add the escrow payments to the mortgage payment

After you create the escrow account, you can track the escrow payments in the account. Follow the steps for the version of Money that you are using.

Money 2005 and later versions

1. On the toolbar, click Banking to view the Account List list.
2. Right-click the mortgage account that you want to use, and then click See Account Settings.
3. Click Change Loan Terms to start the Change Loan Wizard, and then click Next
4. Click Next until you receive the Are other fees associated with this loan dialog box.
   
   Note You may have to click Next many times before the Are other fees associated with this loan dialog box appears.
5. On the Are other fees associated with this loan dialog box, click Other Fees.
6. In the Category list, click Transfer : Escrow Account.
7. In the Amount column, type the amount that you want to add to the mortgage payment, and then click Done.
8. Click Next, and then click Finish.

The Transfer category may not be available if Money is configured to use a single category.
For more information about how to change the category configuration in Money 2005 or Money 2006, click the following article number to view the article in the Microsoft Knowledge Base:

Money 2004 and Money 2003

1. On the Accounts & Bills menu, click Account List.
2. Right-click the mortgage account that you want to use, and then click See Account Details.
3. Click Change Loan Terms to start the Change Loan Wizard, and then click Next.
4. Click Next until the Are other fees associated with this loan dialog box appears.
   
   Note You may have to click Next many times before the Are other fees associated with this loan dialog box appears.
5. In the Are other fees associated with this loan dialog box, click Other Fees.
6. If you are running Money 2004, click Transfer : Escrow Account in the Category list.
   
   If you are running Money 2003, click Transfer in the first list in the Category column, and then click Escrow Account in the second list.
7. In the Amount column, type the amount that you want to add to the mortgage payment, and then click Done.
8. Click Next, and then click Finish.

The Transfer category may not be available if Money is configured to use a single category. To change the category configuration in Money 2003, follow these steps:

1. On the Tools menu, click Options.
2. On the Categories tab, click to clear the Use a single list for categories and subcategories as well as classifications check box, and then click OK.