How to enter Prepaid Interest

In our example, there are 27 days of prepaid interest that comes to a total of $647.19.

We received this prepaid interest at closing.

If you are not collecting any prepaid interest then this section is not required.


Enter Prepaid Interest on Record Payments

All you have to do is go to the Record Payments worksheet and you will see at the very top there is a section for prepaid interest.

Record Payments worksheet location to enter prepaid interest

All you have to do is enter the date you received it, which in our example is the closing date.

Enter the date in Cell D5 in the format '1/5/21' and the amount in Cell G5.

If you do not have any prepaid interest, you do not need to enter anything in either cell.

Example Prepaid Interest added to Record Payments

If you forget to add the prepaid interest as received, then when you come to enter your first payment, the amount due for the first month will have increased by the amount of the prepaid interest.

In our example the payment amount is $729.17 and there is $200.00 in escrow, meaning the total payment expected is $929.17.

In the picture below no prepaid interest has been added, so the first payment has increased by $647.19 as it still shown as outstanding and now $1,576.36 is expected.

First payment increased because no prepaid interest entered

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