![]() ![]() If you transfer secured debt at a low rate to an unsecured credit card charging a steeper interest rate, you’re putting yourself on a slippery slope to potential financial disaster. Your mortgage likely comes with a low and often fixed interest rate, whereas the average credit card interest rate is currently over 18% and many credit cards have variable rates. It doesn’t usually make sense to pay your mortgage with a credit card if you want to spread out your monthly payment or catch up on bills. In this case, you can pay your mortgage with a credit card, pay your credit card bill in full each month to avoid interest and pocket the 0.5% in rewards-that’s $5 in rewards for every $1,000 in payment made. ![]() For example, let’s say paying your mortgage with a credit card results in 2.5% in fees, but you have a credit card offering a flat 3% back. It can also make sense to pay your mortgage with a credit card if you’re earning a higher rate of rewards than the card processing fees you’ll need to pay. If you don’t normally have enough expenses you can pay with plastic to reach the threshold, paying your mortgage with a credit card can leave you significantly ahead-even if you pay a percentage in processing fees to do so. Imagine for a moment you wanted to apply for a credit card offering a welcome bonus of 60,000 points after you spend $4,000 in the first 3 months of opening the card. Earn Rewardsįor the most part, it can make sense to pay your mortgage with a credit card when you’re pursuing a credit card welcome bonus you couldn’t earn otherwise. For many, figuring out the many workarounds needed to use your credit card isn’t worth it unless there are non-mortgage-related benefits. Whether or not you should pay your mortgage with a credit card will, in some part, depend on if you gain any advantage by doing so. Should You Pay Your Mortgage With A Credit Card? There are a few instances where it can absolutely make sense to pay your mortgage with a credit card-even if some added fees and steps are involved. The next problem you’ll face is that, like it or not, the workarounds enabling you to pay a mortgage with a credit card can cost money and the expense can make paying your mortgage with a credit card considerably less attractive if you’re in it for the rewards. First off, banks offering mortgage loans do not typically allow you to pay with a credit card directly, so you’ll have to find a workaround. You’ll face a few problems as you try to pay your mortgage with a credit card. Can You Pay Your Mortgage With a Credit Card? ![]()
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