Using Credit Cards For Mortgage Payments?

Nowadays, it seems like you can use a credit card to pay for almost everything. In fact, there are some mortgage companies which even accept credit cards. Before you hop on this bandwagon, there are some important things you will want to consider.

First of all, it costs money to process credit cards, so this feature is rarely free. For example, American Express was the first to offer this several years ago; they charge each person that wishes to pay a mortgage using their card a one-time fee of $395 to enroll in the program. In addition, there are very few lenders which are participating in the program, so many people can take advantage of it even if they want to. After the burst of the real estate bubble, both homeowners and lenders are hesitant of using credit cards for this purpose.

However if you are an affluent individual with an American Express Platinum Card, it might be worth checking out. Why? Well first of all, it’s a charge card (which requires full payment of charges each month) so you won’t be tempted to dig yourself further into debt. Secondly, the American Express Platinum Card offers higher points on spending; although you are paying $395 to enroll in the mortgage payment program, it can easily pay for itself over time with the rewards that would be earned.