Is Paying Your Mortgage with a Credit Card a Real Thing?

Using a credit card may be a convenient tool, being able to use it to pay many of your monthly expenses. If you have a rewards credit card, it makes the convenience even more enticing. The frequent-flyer and cash back bonuses are an exciting perk.

However, just because you can use your credit card to cover your monthly expenses, doesn’t mean it’s the right call. Sometimes, it can cost you a heck of a lot more. This is especially true when you’re considering those big-ticket items – like your mortgage.

At Fairway Bellevue, we don’t offer the option to pay your mortgage with your credit card. While other lenders do.

When shopping for a loan, be cautious of lenders who starts promoting the perks of using a credit card for mortgage payments. This may cost you even more each month.

Credit Card Fees

It costs money to process a credit card. That’s how credit card companies turn a profit. (That, and the ridiculously large interest rates they charge when you’re late making a payment.) Sometimes, these transactions can be very expensive.

The likelihood of your lender footing the bill on the extra expenses is very slim. They’re most likely going to pass that expense on to you.

If there is a fee associated with using your credit card to pay your mortgage, compare it to the credit card rewards you would receive. If the fee exceeds the rewards, then you’ll be paying to pay your mortgage. And that’s craziness.

Processing

It is very risky business when using your credit card to make your mortgage payments. There is a very high chance it will be processed as a cash advance.

This is not a good thing  because cash advances can be horribly expensive. Cash advances also begin accuring interst as soon as the transaction clears, unlike a typical charge.

Additionally, they typically carry higher interest rates than normal credit transactions.

So, is paying your mortgage with a credit card a real thing? Yes. Do you want to do it? Probably not.

So, the question was “is it really possible to pay your mortgage with your credit card?” The answer is, yes. Is it the best choice? Most likely not.