Have you ever considered paying your mortgage payments with your credit card? Well, if you are considering or wondering can you pay your mortgage by credit card?
Paying the mortgage payments by credit card is totally possible technically! But what do you think it’s a safe alternative as well? If you are interested in paying off your mortgage by credit card, then you should know about the risks that are concerned.
How can you pay your mortgage by credit card?
If you have decided to pay off your mortgage with the help of a credit card, then you have the use of a third-party service in order to do so. You will b amazed to know that lenders do not consider credit card payments as they think credit card payments are not a valid source of paying mortgage payments. Therefore, there are some ways that actually allow you to use your credit card to make mortgage payments:-
You specifically have to go through third-party companies for example plastiq!
Now, plastiq is a third-party company that enables you to pay your mortgage payment to them by using your credit card, and then plastiq pays to your mortgage lender in the form of a check or might transfer the amount or use other ways which are generally allowed as a means of payments.
Such companies generally speaking about plastiq designate this charge like a purchase instead of a cash amount.
Paying your mortgage payment by a third-party company like this enables you to pay your mortgage payments by utilizing credit something this is not even possible, anyway. However, if you are thinking that it's a freeway, this is not true as plastiq earn their profit by charging some amount known as a processing fee. They charge this amount in return for their services, which are extremely expensive. Usually, charge around 2.85%
Some highlights why people pay their mortgage payments by credit card:-
1) Rewards: - Several people get some rewards on their credit card for spending a definite amount in a limited period. By getting these rewards in return and paying your mortgage payment by credit card is totally profitable.
2) Prevent late payments: - If you are unable to pay back your mortgage payment on time, and wish to prevent delayed payments. You can surely use your credit card as a savior and pay off the mortgage payments and then pay back the charge once you have got your funds. However, this is a risky alternative, only if you won't be able to pay back the charge.
3) Delayed foreclosure: - It’s quite the same to evade delayed payments, and you can use the credit card to pay off the mortgage payments to save yourself from making delayed payments
Or save yourself from losing your house to foreclosure. However, this is not an ideal alternative
For the homeowners, as you are putting yourself in danger and you might fall under more liabilities so, that is why it is not recommended to the question “Can you pay your mortgage by credit card”.