I have a loan of 100k and only 94.5k was deposited to my bank account. The remaining 5.5k is for loan origination fees. I pay it monthly for 2 years, and then the remaining balance paid off by another loan. As I'm checking the transaction, it was not zero-out because I did not include the origination fees in QB. Can you please help me how to categorize the loan origination fees? This loan is for general operating purposes.
USA How to categorize loan origination fees?
- Thread starter Daehan Ng
- Start date
Thanks for the answer. What if it's a mortgage loan? Is it tangible asset and amortization?
I have also have recoupment fee for my other mortgage loan, it was paid off by another loan. I have been stuck with these fees, i'm not sure where to enter them. Thank you so much in advance for your help!
If you have closing costs on a loan, mortgage is just a loan secured by real estate, those closing costs are booked as an intangible asset to be amortized over the life of the note.
If you refinance thus paying off the original loan, the net closing costs that remain from the original note get written off, and the closing costs from the new note are booked as intangible asset to again be amortized over the life of the now new note.
If you refinance thus paying off the original loan, the net closing costs that remain from the original note get written off, and the closing costs from the new note are booked as intangible asset to again be amortized over the life of the now new note.