| Home loans paid via credit card to receive cash back? |
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mewalsh100
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Location: Ohio
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| Home loans paid via credit card to receive cash back? |
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I'm trying to find a lender that will allow me to make my mortgage payments bi-monthly using a credit card. My reasoning is two fold. First, to build equity quicker by making two payments a month. Second is to take advantage of a cash back and airline miles credit card I hold. At roughly $1500 a month in mortgage expense, the cash back would be a nice little "bonus" back at the end of the year. So far I've contacted Wells Fargo (my current lender) and also Country Wide. Both lenders are a no go on this. Any advice?
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Wed Mar 14, 2007 7:30 pm |
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efflandt
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Unless your more frequent payment was effectively higher through a 3rd party (or your lender already accepts credit card payments) your lender is not going to go for that, because that cash back or benefits would come out of part of what they would be charged for merchant fees (which can range up to 5% for some credit cards).
When not sure if a deposit had cleared yet, I tried to buy a used vehicle with a credit card (just over $14k, less than half of credit limit) and they would not go for that. They made me go through a full loan application, but I paid it off within 3 day cancellation period, so no interest or fees.
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Wed Mar 14, 2007 11:05 pm |
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Kiaser
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Be careful if you find a mortgage company who will do so, they may take the charge as a cash advance which starts obtaining interest the moment it is charged.
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Thu Mar 15, 2007 12:23 am |
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mewalsh100
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It's funny, both Wells Fargo and CountryWide said it was "too great a risk". Interesting, I'm a long standing mortgage holder with Wells, stellar credit rating, and it's a Platinum Visa with a 25,000 credit limit. Big risk huh!? This is the same lender that has a corporate policy of lending to illegal immigrants and people without SS#'s! But I'm the credit risk right?!
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Thu Mar 15, 2007 2:09 pm |
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mewalsh100
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Cash: $ 1.90
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Location: Ohio
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I agree. I've been doing some research online to see if there are any lenders who can process this type of transaction. I'll post back if I find any.
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Thu Mar 15, 2007 6:02 pm |
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efflandt
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Cash: $ 80.45
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Location: Elgin, IL USA
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In these times of flattening real estate values and increasing foreclosures they would certainly be reluctant to directly accept unsecured debt towards a secured debt. Of course they might never know if you take a teaser rate cash advance to pay down your principal. However, for that to be worthwhile, it would have to be a lower interest than your home loan interest after tax deductions, because credit card interest is not deductable. And if a payment is a day late when the due date creeps backwards or falls on a weekend, you lose.
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Thu Mar 15, 2007 10:58 pm |
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