Categorizing mortgage payments (not splitting now)

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1

I saw some comments on handling mortgage transactions, but not the most basic. If I pay the mortgage loan from a checking account with the same bank, should that one transaction be categorized as a Transfer rather than a Housing expense? I’m new to budgeting and have been categorizing it as an expense, but since there is no offsetting transaction, it seems like a Transfer is best.

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2

For budgeting purposes i would say that the negative in the checking account would show the net negative transaction appropriately for housing instead of transfer because the mortgage payment would then be shown on your budget. If you classify it as a transfer these transactions are hidden by default in tiller.

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3

Thanks for the quick response, Ben. And it makes sense from that aspect. I double-checked where I was getting confused. The transaction that’s getting reported is the payment being applied to the mortgage:

4

Hi Rick,

I have a similar situation with my credit union and a car loan with them. I see two transactions; one for the withdrawal out of checking and the other going into the loan account. I categorize the withdrawal as an expense and the other one as a transfer.

5

Thanks, Clint. I did some more checking and do see the offsetting transaction. So the withdrawal, meaning the transaction out of the paying account is the expense? And the credit to your car loan is the transfer as it increases your net worth (less owed on the car). Got it.

Thanks.

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6

That is correct the withdrawal out of the paying account would be the expense. The other transaction, while it is a credit to your account, it’s not what determines your net worth in tiller. There is a seperate sheet that i believe is hidden by default which is your balance history sheet. This will bring in an updated balance that will increase your net worth.

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7

Thanks Ben. I saw a recent post that there’s a new one in the community created sheets.

Ricj