How to handle cash out from mortgage refinance
My wife and I have refinanced our mortgage and we have taken additional monies to pay off some debt.
We don't track our mortgage, how to we enter the money that we received and are intending to pay off debt.
I didn't think it would go to the ToBeBudgeted, because it is not "income."
We are not going to track the new mortgage either.
Additionally, we received a escrow refund from our old mortgage. This is also not "income." I am confused on how to enter it.
The new mortgage will have its own escrow, however, it will only cover taxes. We will be responsible for paying our own home owners insurance, for which I will set up a category and budget for.
Thank you for any guidance you can provide.
Well, for the cash out you can either pass it through the original category it left your budget in and then reallocate or use To Be Budgeted. A cash out refinance is kinda like a refund of money you already paid. On the other hand if it's from equity growth, then it's new money, which would lean toward TBB.
An escrow refund would be a refund. Use the same category in as it went out.
The category "Inflow: To Be Budgeted" is really just that, so don't get hung up on the term "income". "Income" is not synonymous with "paycheck". This is simply money that "comes in" to your budget. Interest and gifts are two other common non-paycheck inflows that should be categorized as Inflow: To Be Budgeted.