Re: How to set up mortgage, define term, see principle and interest
how much interest you pay each month is determined by the company you pay the mortgage to. What they do is run a computation for the number of days between payments (dates received) and then multiply by the daily interest rate. So it is rarely the same month to month
QB does not do loan interest anyway.
About all you can do, is make the mortgage payment in full and use the liability account for the mortgage as the expense for the payment.
when you get the next statement it will show your payment and the interest portion of that payment that they used. Do a journal entry, back date to the same date as the payment
debit interest expense for that amount credit the mortgage liability account for the same amount
the mortgage liability account will now match the statement, and you do it all again with a new payment