Can I Pay My Mortgage With a Credit Card? – NerdWallet

Key takeaways

  • mortgage companies generally do not let you pay mortgage bills directly with a credit calling card. interim, some credit card companies do not allow mortgage payments on their cards .
  • You may be able to get around restrictions by using a payment serve that charges your credit card and then sends a check to your mortgage company .
  • Using a requital service will result in fees, which will probably more than eat up the value of any rewards you might earn.

Can you pay the mortgage with a credit card?

It ‘s your credit card and it ‘s your mortgage. You ‘d think it ‘d be no effort to use the erstwhile to cover the latter angstrom long as the poster gets paid — possibly to rake in credit calling card rewards on that goodly expense, or to buy some clock to cover your house requital if you ‘re short on money. But that ‘s not constantly the case. In fact, it ’ randomness broadly a stretch to find companies that accept debt-for-debt payments. Whether you have the option to pay your mortgage by credit card depends on several factors, including the terms of the card issuer, your mortgage lender and your accredit card ’ s net — Visa, Mastercard, American Express or Discover. A third-party service may let you get around some of the roadblocks for a fee, but you ‘ll want to think through whether it ‘s the correct affect.

How to pay your mortgage with a credit card

A third-party requital service like Plastiq facilitates mortgage payments with a Discover or Mastercard credit menu. Visa and American Express don ’ deoxythymidine monophosphate presently give up mortgage payments through this serve. You pay Plastiq a fee equaling 2.85 % of your mortgage payment every time you use your credit card. Plastiq then delivers an electronic payment if the lender accepts it, or it cuts the mortgage lender a check, eliminating the necessitate for all three parties — the mortgage lender, the credit menu issuer and the credit card requital network ( Visa, Mastercard, etc. ) — to approve the transaction. You can pay manually this way or set up automatic pistol payments. You besides have the choice of making a erstwhile requital. ideally, you then turn around and immediately pay back your credit card for the measure of the mortgage requital plus processing tip. If you made the transaction with an eligible rewards credit rating circuit board, you ‘ll earn rewards as you would with any other purchase.

Factors to consider when paying a mortgage with a credit card

evening if you can find a way to pay your mortgage with a credit calling card, it may not be worth it for your budget, your credit or both. There are respective factors to consider before choosing this choice :

Fees vs. rewards

It ’ s tempting to pay your mortgage with a credit card if it means you could earn rewards on that typically significant poster. But the price of a third-party process fee can eliminate your earnings. If you have a mortgage requital of $ 2,500, and you ’ re paying a 2.85 % serve fee, that ’ sulfur $ 71.25 each clock time. Credit tease advantage rates vary by issuer, but it ’ second rare that they exceed the cost of such a fee. One exception is a credit card ‘s sign-up bonus. If putting a erstwhile mortgage requital on your card would help you meet a minimum spend requirement for a lavish bonus that far exceeds the fee, it could make smell.

The cost of interest

Putting your mortgage payment on a credit card can result in costly interest charges if you don ’ thyroxine pay your credit calling card bill off in entire every calendar month. The long-run expense of carrying big ongoing balances would easily wipe out any rewards you might earn.

Effect on your credit scores

Making a mortgage payment with your credit wag will probably take up a significant sum of your credit terminus ad quem and increase your credit use ratio, your full debt compared with your sum credit limits. This name has a meaning impact on your credit rating scores, and ideally you want to keep the proportion depleted, generally 30 % or lower. A mortgage payment reaching into the thousands of dollars wo n’t help .

A mortgage payment reaching into the thousands of dollars won’t help your credit utilization ratio.

Consider an exercise : Suppose you have a $ 10,000 limit on the credit batting order you want to use to pay your mortgage. Let ‘s say that you already have a poise of $ 2,000 on that batting order, and that your mortgage requital is $ 2,500. Putting that payment on your card could push your credit use to 45 %. Add more transactions, and your credit utilization keeps climbing. If you ‘re planning to make mortgage payments with your credit wag, consider requesting a credit restrict increase from your issuer to minimize the impingement on your credit scores.

Obstacles to paying a mortgage with a credit card

It seems that the stars have to align thus that you can make a mortgage requital with your credit wag. Your batting order net, your circuit board issuer and your mortgage lender all have to give the green light for a mortgage payment to go through successfully. Each party has its own rules. For example, Visa allows mortgage lenders to accept Visa debit and prepay card payments ; Mastercard allows the function of debit and credit cards for mortgage payments.

But some credit menu issuers don ’ t admit mortgage payments. Bank of America credit cards, for case, can not be used to pay a mortgage. Wells Fargo credit poster holders may have more luck ; their cards can be used to pay a mortgage equally hanker as the mortgage lender accepts them .

Check with all three parties — card network, card issuer, mortgage lender — to ensure your payment will process.

Of course, not all mortgage lenders do, but they might be more volition to accept your requital if it ’ s processed by a third-party payment service provider like Plastiq. It ’ mho best to check with all three parties — card network, tease issuer, mortgage lender — to ensure your requital will process. differently, you run the risk of a late or declined mortgage requital.

Should you pay your mortgage with a credit card?

If you can navigate the waters to make it possible, paying your mortgage with a accredit tease is an option, assuming the rewards outweigh the fee. a retentive as it wo n’t hurt your credit and your budget, it ’ sulfur worth considering. But if you ’ re already using a boastfully chunk of your accredit restrict, or if you ’ ra fast on money for bills this calendar month, putting your mortgage on a credit card international relations and security network ’ t the best idea. It could hurt your credit scores and end up further straining your budget over the long term if you don ’ thymine pay your credit card circular off in fully.

What’s next?

frequently asked questions Can you pay a mortgage with a credit circuit board ? It may be possible to make a mortgage requital with a credit card, but you ca n’t barely “ put it on your card ” like a regular purchase. alternatively, you ‘ll need to go through a third-party service that charges your card, then sends a check to the mortgage company. The service will charge a fee for doing this . How do I pay my mortgage with a recognition circuit board ?

  1. Find a payment service that accepts credit cards. These services charge your card, then send a check to your mortgage company. One exercise is Plastiq .
  2. Verify that your credit card will allow you to make a mortgage payment. With Plastiq, for model, Visa and American Express cards ca n’t be used for mortgage payments .
  3. Set up your mortgage payment through the servicing. A tip will be tacked onto the amount of your mortgage payment and will appear on your placard .
  4. Pay your credit card bill in full adenine soon as possible. pastime is already a large collocate of your mortgage payment. Putting the payment on your credit card can mean paying concern on that matter to .

Can I earn rewards by paying my mortgage with a credit calling card ? You might be able to earn credit card rewards with a mortgage payment, but you ‘re likely to pay more in fees than you get back in rewards. Can you pay a mortgage with a credit batting order ? It may be possible to make a mortgage requital with a citation card, but you ca n’t just “ put it on your calling card ” like a regular purchase. rather, you ‘ll need to go through a third-party service that charges your poster, then sends a control to the mortgage company. The service will charge a fee for doing this. How do I pay my mortgage with a credit rating card ?

  1. Find a payment avail that accepts citation cards. These services charge your card, then send a check to your mortgage company. One exemplar is Plastiq .
  2. Verify that your citation poster will allow you to make a mortgage payment. With Plastiq, for example, Visa and American Express cards ca n’t be used for mortgage payments .
  3. Set up your mortgage payment through the service. A fee will be tacked onto the come of your mortgage requital and will appear on your poster .
  4. Pay your credit rating card charge in full adenine soon as possible. interest is already a big ball of your mortgage payment. Putting the payment on your credit circuit board can mean paying interest on that interest.

Can I earn rewards by paying my mortgage with a credit tease ? You might be able to earn credit rating batting order rewards with a mortgage requital, but you ‘re probably to pay more in fees than you get back in rewards .

source : https://www.peterswar.net
Category : Finance