Can I Put My Mortgage Payment on My Credit Card?

Close-up of credit card.
Image Credit: Ciaran Griffin/Stockbyte/Getty Images

Not only is it possible to pay a mortgage payment with a credit card, you might even earn rewards points that go towards paying down the balance. Some credit card issuers have cards specifically designed to allow borrowers to pay their mortgage. Mortgage providers, however, tend to avoid allowing credit card payments, because the bank has to pay merchant fees on each payment.

Identification

Most credit cards and mortgage providers are not set up to allow a person to charge a mortgage payment. In May 2007, American Express launched one of the first card programs that lets consumers put mortgages on plastic. This program, however, costs $395 per year, so it takes a mortgage worth more than $39,500 per year just to recoup the annual fees via 1 percent cash-back rewards.

Benefits

Some credit card programs let users put their rewards towards paying down their home. Ditech, a subsidiary of mortgage giant GMAC, has a package that includes a mortgage, secondary mortgage and credit card. Users get points for each dollar spent that go toward paying down the mortgage. Home Rebate Platinum Select MasterCard by Citibank lets account holders put mortgage from any provider on their card and earn 1 percent cash back. Even if you do not get rewards, putting mortgage on a card extends the grace period on the loan by another month.

Considerations

Qualifying for any credit card that lets users put a mortgage payment on it typically requires the borrower to have at least good credit. The Ditech program, for example, has a minimum credit score of 620. The American Express program is only available to people with prime rates too, according to Mortgage News Daily.

Warning

Be prepared to pay down the credit card used for the mortgage payment as quickly as possible. Otherwise, you've exchanged a relatively low interest mortgage debt for a credit card debt with a higher rate. Finance charges for rollover expense range from 8 to 18 percent, which could make your mortgage payments much higher than they normally are and negate the benefit of a longer grace period or cash-back rewards. Use automatic bill payment if your bank or card offers it.

references