Set up an interest-only loan
Some home mortgages allow you to pay only the accrued interest for a specified period of time. To track a loan that has interest-only payments for a set period of the loan term, set up the loan with a term that is equal to this preliminary period.

If you make interest-only payments for a preliminary period of a loan term, the loan balance will be equal to the loan amount at the end of this preliminary period. At the end of the preliminary period, you can change the loan terms for the remaining period of the loan.

To set up an interest-only loan:
  1. At the top of the page, click Banking.
  2. In the left pane under Common Tasks, click Add a new account.
  3. Choose Other account type, and then click Next.
  4. In the list of account types, click Long Term Loan, and then click Next.
  5. Click Track transactions and other details, and then click Next.
  6. In the New Loan Wizard, follow the instructions on the screen.
    • When you get to the page with the Principal + interest box, leave it blank.
    • In the Balloon amount box, type the full amount of the original loan.

Note

If your loan terms change, you can update the loan account information in Money. To learn more, see the related topics below.