Extra loan payment without interest
We have a loan with a fixed monthly payment that includes interest. But I can pay off any extra amount which would not include interest at that time.
Starting balance: 5000
Extra payment: 400
Now the balance should be: 4400
Fixed payment: 200
Now the balance should eg be: 4250 (since interest is payed using this fixed payment)
However, if I do this in the new Loan structure, interest is deducted from the first payment made (in this case from the 400). This makes it so that the total loan balance is incorrect.
Is there something I can do about this?
The Loan "feature", if you can call it a feature, was designed withthe rules of U.S. based mortgages loans in mind. It will not work correctly for any other type of loan or when doing unusual transactions.
My suggestion to you, as it is to just about everyone else who has used the loan feature and asked a question of this nature, is to not use it because it is fundamentally broken.
And then if you are so inclined, submit a feature request that explains why the feature that they released is pretty much unusable, so that maybe someday they will actually fix it, unlike almost every other major bug they introduce (they don't mind fixing the small bugs, like having extra spaces in the code that don't affect anything).
I don't use the loan "feature" because it doesn't work. From what I've read, even when it is used correctly for the 1 loan type it was implemented to track, the interest figures calculated are not always correct...
In answer to your question, though, I think you need to have the first payment in a month be the required payment (which includes interest). Any subsequent payment made in the same month will just affect the principal balance.
You're right: the interest is applied with the first payment made. Are you finding your balance is off at the end of the month after your extra payment AND regular payment? At that point, you can Adjust the Balance.
Making the Loan Accounts work for wider range of circumstances is a priority for us, so please so submit your experiences so we can add those as data points!
Cornflower Blue Cobra I recommend you look at undebt.it which is free and can handle multiple scenarios where extra payments are made. Then in YNAB just record the loan payment against either a loan category or a tracking account and update balances as needed.