Can I make mortgage payments with credit cards?

The answer is YES. You can make mortgage payments with credit cards. Earlier credit cards and mortgage didn’t gel well. However, there are few credit card companies that have introduced a program where the 2 will blend. Reports suggest that 2 credit card companies are letting customers make their mortgage payments with credit cards. However, the services offered by these companies differ from one another. One such company has introduced reward programs. Under the reward program, customers can apply reward points to the principal balance of their mortgages.

Although these programs can help you to make mortgage payments but experts are of the opinion that it involves very high risk. And there are chances that it may lead you to a debt trap and add to your existing debt load. These programs may appear to be tempting but they are very “flimsy”. If you want to place your house on a card, make sure it doesn’t fall like a pack of cards.

You can use your credit cards to make mortgage payments provided your credit card company has entered into a deal with your lender. The lenders fear that the borrowers making mortgage payments may use credit cards irrationally and may land up in more debts thus putting the mortgage at a greater risk.

Credit card mortgage programs vary

The credit card mortgage payment programs offered vary from one another. The variations can be as under –

• You may have to shell out hundreds of dollar as fee for enrolling in the program.
• In majority of the cases, credit card mortgage payments are meant for prime mortgages.
• One of the credit card giant offers credit card mortgage payments to borrowers with prime mortgages. The program offers “automatic payment plans” when you are refinancing your mortgage. To avail the program you have to shell out USD$395.

Salient features of credit card mortgage payments

If you have taken out a mortgage and you have just a few years to complete your loan term, you can pay the outstanding loan balance with your credit card. This is possible ONLY if your credit card limit exceeds the loan balance.

You can use credit cards to pay off your mortgage provided the current mortgage rate attracts higher interest rate as compared to the interest rate your credit cards attract. In this case it is good option to make mortgage payments with credit cards.

Recommended Sites:

Mortgage calculator – Finding the perfect loan for the perfect home