Money: How to record a down payment when you purchase a house (873275)


The information in this article applies to:

  • Microsoft Money 2005 Deluxe
  • Microsoft Money 2005 Premium
  • Microsoft Money 2005 Small Business
  • Microsoft Money 2005 Standard
  • Microsoft Money 2004 Deluxe
  • Microsoft Money 2004 Premium
  • Microsoft Money 2004 Small Business
  • Microsoft Money 2004 Standard
  • Microsoft Money 2003 Deluxe
  • Microsoft Money 2003 Deluxe and Business
  • Microsoft Money 2003 Standard
  • Microsoft Money 2002
  • Microsoft Money 2001
  • Microsoft Money 2000
  • Microsoft Money 99
  • Microsoft Money 98
  • Microsoft Money 97
  • Microsoft Money 2000 Business and Personal
  • Microsoft Money 98 Deluxe Edition
  • Microsoft Money 98 Financial Suite

INTRODUCTION

This article describes how to use Microsoft Money to record or to track a down payment when you purchase a house.

MORE INFORMATION

Most mortgage lenders require a down payment of 5 percent to 20 percent of the sale price when you purchase a house. However, Money does not have a specific method for recording the down payment.

As a workaround, record a down payment in Money.

For example, you want to purchase a house that is valued at $400,000.00. When you purchase the house, $100,000.00 is to be used as a down payment, and $300,000.00 will be borrowed from a bank as a home loan. In this case, the value of the home is $400,000.00, but you owe $300,000.00.

To record a down payment in Money, follow these steps:
  1. Create a Home account that has a value of $300,000.00.
  2. Record a $100,000.00 transfer transaction from another account, such as a saving account or a checking account, to your Home account.

    Note The balance of your Home account is now $400,000.00.
  3. Create a $300,000.00 loan account and associate the loan account with your Home account.
Modification Type:MinorLast Reviewed:4/8/2005
Keywords:kbui kbhowto KB873275 kbAudEndUser
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