Can You Pay a Mortgage With a Credit Card?

Posted by CreditCardGuru

Q: I would like to know how I can use a credit card to pay my mortgage? Is that still possible to do?

A: Well first of all, you know I’ve got to ask… are you looking to pay a mortgage with a credit card for rewards/cash back? Or do you need to pay by credit card because you can’t afford payments?

If it’s the latter, then this “how to” advice isn’t for you. If you can’t afford your mortgage I would recommend speaking to attorney to explore options (i.e. loan modification, foreclosure, short sale, etc.)

But if you want to know if you can pay your mortgage with a card for free points or rewards, then keep reading!

For starters, it’s important to point out that the real estate bubble changed everything. During the ’00′s there were all kinds of crafty ways to pay mortgages. However after the crash that all changed.

What options exist in 2013?

There is a third-party service called ChargeSmart that will let you pay using a credit card. The fees to do so are just a bit over 2.5% last I checked.

Chargesmart screenshot

Meanwhile if it’s a rent payment you need to make, then check out WilliamPaid…

WilliamPaid screenshot

WilliamPaid is free if using a bank account, but if you use a credit card the fee was 2.95% the last time I checked. A good option for those in apartments.

With either service, make sure you use the right card! If you need to pay this money back over time, don’t get ripped off with 15% or 20% interest from your bank. Instead consider one of these cards which give 0% on purchases.

All the options below no longer work

American Express mortgage payment?

Back at the peak of the bubble in 2007, American Express cardholders could pay any prime level mortgage from American Home Mortgage for a one-time fee of $395. If you paid you always paid your credit card bills on time and in-full, this option definitely made sense considering the high cash back offered on the AmEx Blue Cash.

However as of 2013, the option to pay a mortgage with American Express no longer appears to be available.

Bank of America card mortgage payment?

The other company which offered options (abeit indirectly) for paying a mortgage using a credit card was Bank of America. All FIA issued cards (which is a wholly-owned BofA subsidiary) offered the ability to pay bills for free using your credit card. Although this option specifically created for mortgages, many would use this service to pay mortgages with credit cards from Bank of America. Sounds like a cool trick until you hear that no points or rewards were given on FIA bill payments… so there really wasn’t any point in using it for your mortgage.

Back in 2010 the FIA Bill Pay Choice was canceled.

Any way to pay and earn points?

Unfortunately, not at this time. Some have brought up the idea of using Paypal to get money to pay their mortgage, but that will always be a losing proposition… even the best cash reward credit cards won’t make up the 3% in fees that Paypal charges. That being said, it still could be a strategy to do it, if you’re using it because you need financing (and therefore, rewards aren’t a priority).

This post was written or last updated November 7, 2013

24 comments... read them below or add your own

  1. Justin January 23, 2014 at 9:56AM

    What about Amex Serve? You can fund your account from a Credit Card (for free, and you do get CC rewards) and use their bill pay to pay anyone! Watch out though – some CC view this as a ‘cash advance’ and will charge the fees…so far Chase and Barclay do not for me.

    • Debbie Jackola January 31, 2014 at 8:34AM

      Hi Justin…We just got the Carnival Cruise card from Barclay, and have rentals that we would like to put all the mortgages on the card for points. Thanks for the info, will check into this!! Debbie

    • Debbie Jackola January 31, 2014 at 8:38AM

      Ok, I haven’t looked into it too much, but Amex looks like it’s for American Express. How do I go about using my Chase and Barclay cards? Thanks for the info!

    • chiji February 28, 2014 at 4:20PM

      Cash advance fees for credit card loads may apply; please check with your credit card issuer for details.

  2. Roberto January 31, 2013 at 10:44AM

    What about using pageonce? They charge, I believe 30 cents to pay anything with a credit card.

    • Andrew November 4, 2013 at 1:56PM

      I found the following on the Pageonce Terms of Service. Basically, they monitor your payments (i.e. can’t use credit card to pay mortgage) otherwise they cancel your account.

      You acknowledge that certain Payees may not accept payment from all types of funding sources and that we may otherwise limit the payment methods available for a particular Payee. For example, you may not be permitted to use a credit card to make a mortgage payment. Additionally, we may, at our discretion, impose limits on the number and amount of payments, in aggregate, that you can send using the Bill Payment Service. In no event will any user be permitted to use the Bill Payment Service to make payments to Payees of more than $10,000 per calendar month in aggregate.

  3. Moe December 27, 2012 at 2:22PM

    This is what I found on the Chase Sapphire website terms and conditions of earning promotional points, “You do not earn points on balance transfers, cash advances, cash-like charges such as travelers checks, foreign currency, and money orders, any checks that are used to access your account, overdraft advances, interest, unauthorized or fraudulent charges, or fees of any kind, including fees for products that protect or insure the balances of your account. “

    • Visitor February 23, 2013 at 12:56AM

      Thanks mo for that totally obvious and useless information. At least it didn’t pertain to the discussion in any way. Good job, thanks for the input! ! !

  4. Andrean November 14, 2012 at 7:07PM

    Charge Smart charges $22.95 for up to $1300 mortgage payment. If $1300 or over, they charge incrementally ~$5 for $1500, ~24 for $2000, etc.

  5. Jack August 17, 2012 at 11:22AM

    I like how this article’s header on Google is “How to pay a mortgage with a credit card for free,” and then proceeds to tell you it’s impossible.

    Thanks, you jerk.

    • Michael August 21, 2012 at 8:54PM

      Sorry about that Jack, I was in the process of updating with the current options. Previously it was possible to do it for free thru BofA.

      • PT March 20, 2014 at 2:18PM

        Although you may have fixed the body of the page, the title of the page is still wrong, which is throwing off google search.

  6. sean w June 22, 2012 at 11:03AM

    how about that new Apple Square? what if i charge myself equal to my mortgage payment on my rewards card then take that money back out of the Square account and pay my mortgage. Then, obviously, pay my rewards card.
    …i just looked it up, its a 2.7% charge per swipe :-/
    will this even pay itself back in rewards?

  7. Banker May 8, 2012 at 8:45PM

    A cashiers check or money order, is backed by cash and guaranteed by the bank that issues it. To purchase with a credit card, a bank would cash advance your card and use the cash to purchase the cashiers check / money order. This requires a 3-5% fee on the total depending on your card agreement. The amount goes into the cash advance category which accrues interest daily (no grace period) at the highest rate. Also rewards are not available for this for any card. Lastly the sale of a Monetary Instrument requires reporting under the Bank Secrecy Act for amounts over $3000.00

  8. jim March 30, 2012 at 9:48AM

    I wonder if you can purchase a cashiers check with a credit card and then use the cashiers check for the mortgage?

  9. Zen Rider March 22, 2012 at 7:32PM

    The USPS will not let you use a cc to buy a money order. Most retailers will not either, I have read that some small local retailers might accept a credit card to purchase a money order but i have not found one yet.

  10. Fred January 24, 2012 at 1:33PM

    There is a bill paying service called Charge Smart that for a fee will let you use your credit card to pay a mortgage, auto or student loan or even an utility bill. How it works: The company acts as a middleman, accepting payment from your credit or debit card and then arranging a funds transfer to pay your bill. But it charges a fee of as much as $9.95, in the case of a car payment.

    • CreditCardGuru January 26, 2012 at 5:59PM

      Thanks for the heads up Fred. I checked it out and it looks like in addition to the fee, there is also a percentage fee on the amount of a few percent.

  11. Vistor December 25, 2011 at 9:45AM

    The cash advance does not count towards points, so withdrawing [a cash advance] from you credit card would not create a benefit. Also, for money orders, you have to pay with cash… they will not let you use a credit card for money orders.

  12. TJ December 15, 2011 at 3:46PM

    I can’t imagine the money order thing working because of two reasons. The first being that whomever you purchase the money order thru will charge you a fee. How much of a fee, I do not know. The second being that your CC issuer will view this as a cash advance and charge you the appropriate rate. I’ll have to read my agreement but I can’t imagine them doing that for free. Perhaps if I were to pay my full bill monthly, which I do, I would avoid fees.

  13. mike December 15, 2011 at 7:34AM

    i dont think you can buy Money orders with CC.. i was thinking if you can withdraw money from the CC for points?

    • jenn May 18, 2013 at 11:42AM

      No you cannot get points on a cash advance

  14. Mary Murray October 28, 2011 at 8:52AM

    That is an awesome Idea about purchasing a money order, did this work?

  15. K Bluspiro September 15, 2011 at 9:34AM

    I’ve been trying and trying to think of a way to do this, yes to capitalize on a rewards card since we’re paying so much money toward the mortgage each month. Someone suggested using your credit card to purchase a money order each month, and then using the money order to make your mortgage payment. But I don’t know if you can buy a money order with a credit card. And if you can, perhaps that would be excluded from rewards on credit cards. Do you know the answer?

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