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Their reviews hold us accountable for publishing high-quality and trustworthy content. About our Review BoardWritten by Tim Maxwell Written by Tim MaxwellArrow RightContributor Tim is a freelance personal finance writer and blogger with a particular focus on credit cards and consumer lending. In 2002, he stumbled upon a copy of "The Millionaire Next Door," by Thomas J. Stanley and William D. Danko, which ignited a passion for learning and sharing fact-based money principles. Tim has a passion for demystifying personal finance and helping people live their best lives. Tim Maxwell Edited by Mariah Ackary Edited by Mariah AckaryArrow RightEditor Mariah Ackary is a personal finance editor who joined the Bankrate team in 2019, excited to help people make good decisions with their money. Send your questions to [email protected] Mariah Ackary Reviewed by Cathleen McCarthy Reviewed by Cathleen McCarthyArrow RightSenior Editor Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. But covering your mortgage with a credit card is actually a pretty complicated financial maneuver. And, in many cases, it's more expensive than paying a late fee. Many mortgage lenders simply don't accept credit card payments because of the transaction fees, and if they do, they charge a processing fee. That said, while it's possible to pay your mortgage with a credit card, the two primary methods -- using a third-party processor and converting gift cards to money orders -- are far from ideal. Below, we explore how to pay your mortgage with a credit card and whether it's worth the hassle. If your mortgage servicer won't accept a credit card payment, there are services that can help you get around that. Companies like Plastiq will charge your credit card for the mortgage amount and then send your servicer the money. But that work-around comes with a cost, and you'll pay a fee based on the amount you're sending your lender. Plastiq, for example, charges a 2.85% processing fee and accepts only Discover or Mastercard. If you're using a credit card to pay your mortgage on time, you'll want to crunch the math to see whether the processing fee is lower than the late fee. If earning cash-back rewards is your motivation, you'll also need to calculate the value of the points or miles versus the processing fee. For a $1,500 mortgage payment, Plastiq would charge you roughly $43 in fees. If you're only earning 2% cash back with your credit card, that's a net loss. The gift card methodAnother way to earn rewards when paying your mortgage is to use your credit card to purchase Visa or Mastercard gift cards. (We recommend buying PIN-enabled gift cards, which offer better security in case they're lost or stolen.) You can then use these gift cards to buy a money order to pay your mortgage. Tedious? Yes. But if you're committed to earning rewards for your mortgage payments, it's worth considering. You can even purchase gift cards at a retailer that offers bigger rewards -- like a grocery store. Money orders typically cost about $1 plus postage and are usually capped at $1,000. If your mortgage payment is greater than that, you'll need to purchase multiple money orders, which can further complicate things. If your mortgage is serviced by a bank with a physical branch, you may be able to buy money orders there and then pay your mortgage in one trip. While you'll save on processing fees with the gift card method, it's sort of a pain in the neck. And if you need to mail your payment, bear in mind that it could take several days for the payment to arrive, so you'll want to submit it early. Advantages of paying your mortgage with a credit cardUsing a credit card to pay your mortgage could help you avoid late fees and earn free flights and other lucrative rewards. But there are other advantages to paying your mortgage with a credit card.
Risks of paying your mortgage with a credit cardWhile landing big bonus points from a big credit card purchase may sound enticing, trying to pay your mortgage with a credit card is often more trouble than it's worth and could create more problems than it solves. Here are some of the risks and drawbacks to consider:
Should you pay your mortgage with a credit card?In most cases, it's more hassle than it's worth. Third-party payment processors charge nearly 3% in fees every month, so unless your late fee is much higher or you're earning 4% cash back or more, it's not worth it. While the gift card method is more affordable, it requires multiple steps and time investment. And unless you pay off your credit card balance in full each month you'll be hit with interest charges that are likely to wipe out any rewards you've earned. Can I use a credit card to pay my mortgage?Yes. Technically paying down your mortgage with a credit card is possible, but it is a complicated process. Mortgage lenders do not accept direct credit card payments, so you will need to find a workaround service like Plastiq in order to carry out the transaction.
Why can't I pay my mortgage with a credit card?Mortgage lenders in general don't accept credit cards. One reason is that mortgage lenders would incur transaction-related fees. Lenders also don't like the idea of your paying one debt by taking on another debt. So this means you have to use a third-party service to pay your mortgage with a credit card.
What bills can be paid with a credit card?You may be able to pay a wide range of bills with a credit card, including utility, phone, cable, internet, streaming subscription, insurance, and medical bills. Keep in mind that some companies charge a convenience fee for paying with credit. You can check with billing departments to verify payment policies.
Can I use my Chase credit card to pay my mortgage?For example, mortgages from Chase cannot be paid directly by credit card; the bank only allows payments from a Chase account, transfers from other banks, checks, or money orders.
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