mortgage question ??

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i just got a mortgage on a house. so my question is can i pay my mortgage with a creditcard to the bank???

yes, you can use your credit card account to pay your mortgage. but if you are doing it to earn rewards, then no.

HOW: use a credit card convenience check, or do it online if you have an MBNA issued card using their Billpay feature. you DO NOT earn rewards for either.

One "roundabout" method to earn rewards is to first buy Charter One giftcards (discussed below, now dead). Then cash those out and use the funds from the giftcards to pay your mortgage.

wow, you spelled mortgage three different ways

It is a good thing no one took me up on my bet in this thread. I would have been out five dollars.

curbcrusher:
Oh I did, ...was I supposed to contact you?

You can paypal me at .....

what? why wouldnt they let you get 1-2% back on your mortgage...thats just silly of them

next thing you know they'll charge interest

My mortgage payment is around $1600...here's what i do every month.

Order $1500 in charter one gift cards using my MBNA worldpoints card, cash them out (I get around $1495 after all fees, money orders etc) then use them to pay off the mortgage mostly...then pay the credit card off with funds that would have gone to the mortgage.

Its cumbersome, but i'm technically using my MBNA card to earn 1% discount off my 4.5% APR mortgage <img src="i/expressions/face-icon-small-smile.gif" border=0> Add to that tax benefits and my real interest rate is about 1.8% for my home. I'm sure others could use similar schemes to eek out more...but this works for me.


Am I mis-reading you Nodeel? 1% cash back on your *payments* does NOT translate to 1% drop in your APR. You're getting 1% back on your payments, not your principal.

example (assume interest-only for simplicity):

10000 in annual interest payments on 100000 mortgage => i = 10%
9900 in payments after rebates => i still = 9.9% (not 9%)

-or-

4500 on 100000 => i = 4.5%
4455 on 100000 => i = 4.45% (after cash back)

Yep, it lowers your effective rate... but not jaw-droppingly so. Am I missing something here?

Bag of chips is right. The key is the real meaning of "1% discount".

That translates to multiplying by 99%, not subtracting 1%.

paypal has bill pay feature where money supposed to go out your account and backed up by credit card if not sufficient.

so... theoretically if you open up a paypal account from a savings account that cant be overdrawn and try to send payment to mortgage bank, counting its in the list of accepted merchants in paypal - then you will end up paying for it with your credit card.. any one try this <img src="i/expressions/face-icon-small-smile.gif" border=0>

munkyman said: [Q]paypal has bill pay feature where money supposed to go out your account and backed up by credit card if not sufficient.

so... theoretically if you open up a paypal account from a savings account that cant be overdrawn and try to send payment to mortgage bank, counting its in the list of accepted merchants in paypal - then you will end up paying for it with your credit card.. any one try this <img src="i/expressions/face-icon-small-smile.gif" border=0>

Munkyman -

That's a great idea! Has anyone tried this to confirm? I found Countrywide and Aurora on the list (two big servicers). If this works out, it could be a consideration when getting a loan or refi (who will eventually service the loan).

Bad news, I checked Paypal's FAQ:
Q: Can I fund BillPay transactions with a credit card?

A: No. BillPay payments may only be funded using your PayPal account balance or your bank account.

Good try!

that's too bad. maybe they recently changed rules or something.. or perhaps I didn't read the rules properly. sorry.



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