If you have either paid off your loan or mortgage, or have refinanced or transferred to another lender
and wish to zero out the loan, then entering the final payment outside of a 'loan payment' transaction may be difficult
to work out.
In MS Money, there is a special category called 'Principal Transfer'. You don't always tend
to see it in the category drop down lists when you create a withdrawal or debit transaction. However, you can type
it in, and then enter a subcategory of the name of the loan (this is easier to do with two dropdowns for category and
subcategory). The view of this in operation can be seen in the image below.
If you're using two dropdown lists, then the available loan account names are visible in the second
dropdown list. (If you're using Money 2005, you can turn on the dual dropdown lists by referring to
Knowing this, if you need to transfer an amount into a loan to zero it out, you can use this category to
transfer the correct amount of money from the account you are paying it from. Use a payment type transaction
though, as you can't use categories in transfer transactions.
Keywords: mortgage, loan, close