can you pay your mortgage with a credit card?
- Thread starter rnmcd
- Start date
DrPizza
Administrator Elite Member Goat Whisperer
That's a good question. I think so. We use a debit account to pay all of our bills online. I don't see that it would make a difference if it was a credit card. Perhaps a good idea for us to look into - switching to an account that earns us points. Then, paying off the balance in full on that account every month.
Locut0s
Lifer
- Nov 28, 2001
- 22,205
- 43
- 91
My uncle and his partner/wife found a loophole that allowed them to do just that for a while. I'm not sure exactly how it worked but they found that they were able to borrow money off their CC, and then use that money to pay their mortgage. They then quickly turned around and payed off the CC. Earned a lot of points that way for a while.
yes you can, i'm the asst. vp for my aunt's mortgage company and we just started accepting credit cards as a form of payment. www.hayhurstmortgage.com
the problem is the 2% fee that the credit card companies charge merchants. if someone has a $2,000 mortgage payment, that's $40 that their payment will be short once it gets to us. we collect several million a month in mortgage payments, about $100,000 of which is through automatic ACH debit. say 10% of people start to pay with a credit card, that's $2,000 a month that we'll be short. i recently suggested that delinquent customers be the only ones allowed to use CC to get their account up to date. either that, or we'll have to start charging a convenience fee.
which brings me to an important question: would you guys be willing to pay a convenience fee to submit your mortgage payment with a credit card? it's a definite no for most people, but in some emergency situations, it might be worthwhile to eat up $20 per $1000 to avoid a late or missed payment.
=|
the problem is the 2% fee that the credit card companies charge merchants. if someone has a $2,000 mortgage payment, that's $40 that their payment will be short once it gets to us. we collect several million a month in mortgage payments, about $100,000 of which is through automatic ACH debit. say 10% of people start to pay with a credit card, that's $2,000 a month that we'll be short. i recently suggested that delinquent customers be the only ones allowed to use CC to get their account up to date. either that, or we'll have to start charging a convenience fee.
which brings me to an important question: would you guys be willing to pay a convenience fee to submit your mortgage payment with a credit card? it's a definite no for most people, but in some emergency situations, it might be worthwhile to eat up $20 per $1000 to avoid a late or missed payment.
=|
Your agreement with Visa/MC/Amex/Novus will prohibit you from charging a convenience fee. Period.
As long as the company can rationalize it and basically swear that the "convenience fee" isn't because of the back-end fees from the CC cos, they can do it, and lots of businesses indeed do that, legally.
JulesMaximus
No Lifer
- Jul 3, 2003
- 74,570
- 969
- 126
Originally posted by: Yossarian
yay for nepotism
that's not nice. i've got excellent academic credentials and i work extremely hard. in fact, i have to work twice as hard as everyone else so that people aren't bitter towards me.
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