How to handle Refi?
So I am changing banks and doing a refi - pay off old bank and start a new bank with cash out option,
OLD bank has 440K loan in YNAB, the new bank will be 516K - so how do i reflect this in YNAB?
New bank will pay off old bank and give us cash out of $65K (TBB??)
I just did something similar since my mortgage just got transferred to a new company. Create the new account and transfer the balance of the old account to the new account. Reconcile the old account to the 0 balance and close it. It's as simple as that.
In the new account add a transaction for the additional 65K loan. The 65K will appear in TBB. Now you can budget it.
Just jumping in to add a bit more context to what Superbone said. Here's the step-by-step to set up that new mortgage Tracking Account:
- Create a new mortgage Tracking Account with a starting balance of $0. You can make it unlinked to start.
- Then, close your current mortgage account. When you close it, you'll be prompted to transfer the balance to your new mortgage Tracking Account.
- Finally, you'll want to make a Reconciliation Balance Adjustment in the new account so the balance accurately reflects what you owe.
- Later on, if you are able, you can link the new Tracking Account.
As for the cash out money, I'm assuming you'll receive a check at closing, which you'll deposit to an on-budget savings or checking account. So, you'll want to add that transaction as an Inflow: To be Budgeted in the deposit account. Then, give the dollars jobs! :)