2nd Mortgage

by Maria
(Vancouver, Canada)

I got a 2nd mtg for 85000.00 @8.25 intial annual int rate.compounding monthly starting feb 1,2008. the apr is 11.496%, advanced to us on jan 18,2008. term 24 months,amortization period 300 months.. the first pymt due march 1,2008 ,maturity feb 1,2010, pymt amount 671.00 per month.

A pymt of 172.89 was in feb 2008, which was first pymt for 8 days, and then 671.00 march 1,2008,which was made up of int 155.83 principal 17.06 and then 584.26 interest and 86.74 which had the balance at 84896.20. We then got in mess and from july 1,2008 pymts were all nsf.

They added the amount of 671.00 plus 25.00 nsf fee on to mortgage amount which was 84632.38 after june pymt.at the end of 2008 the amount of mortgage was now 88336.63, and in jan 2009 we made a pymt of 671.00 -interest 607.31 and principal 63.69 , balance now 88272.94. Then all our pymts went behind again and as of aug 1,2009 the balance was 92104.96.

I just dont understand how the principal goes up so much. are they allowed to add the pymt missed and nsf fee on to the mortgage. It doesnt seem right or fair. I dont know how to figure it out. Thank you

maria

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Bookeeping a Mortgage Liability

by Alex
(Canada)

I know that a mortgage due is a short term liability for what principle is due within the current fiscal year; and a long term liability for the remainder.

Lets say that My company has a $400,000 mortgage. It pays $4,000/mth x 12 $48,000. $20,000 is payment of principal and $28,000 is interest.

How do I actually record this on my balance sheet? I know the concept I need to be shown exactly how it is done. I use quick books.

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Missing Mortgage Payment

What banks tax rate to charge on a missing house payment?

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Mortgage Payment

by Bill
(Houston, Tx)

What are the accounting entries for making a mortgage payment?
i.e. pay the bank $1000.00 where $900.00 is principal and $100.00 is intrest.

Credit cash for $1000.00 Debit what besides Mort. Interest?

What are the entries to effect equity etc.?


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