Can You Pay a Mortgage With a Credit Card?

Posted by CreditCardGuru

Q: I would like to know if it’s possible to use a credit card to pay my mortgage? I’ve heard that it can be done with certain mortgage companies but don’t know where to turn to find our more.

A: Well first of all, you know I’ve got to ask… are you looking to pay a mortgage with a credit card for purposes of convenience or leveraging this big monthly spending obligation in order to earn lots of reward points, miles or cash back? Or are you essentially borrowing the money with a credit card because you don’t have the funds on hand to make your payment?

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

However, if you simply want to explore the options of paying your mortgage with a credit card in order to leverage such a large monthly spend category to earn cash back, reward points or miles, then bravo – keep reading!

For starters, it’s important to point out that the real estate bubble and subsequent crash in the past decade literally changed everything. During the ’00′s there were all kinds of crafty ways to pay mortgages. However, after the crash the housing finance world dramatically changed, largely because some banks got burned on one or both fronts since many bank holding companies have both mortgage lending and credit card divisions. During the crash both of these critical lines of business suffered huge losses due to customer defaults. Not to mention that capitalism itself almost collapsed during that turbulent period, but that’s too big of a topic to tackle here.

What options exist in 2015?

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. However, that’s going to more than offset any potential benefit from earned rewards.

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 2015, 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 still 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 February 2, 2015

Editorial Disclosure: The editorial content on this page is not provided by any bank, credit card issuer, airline or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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

  1. tom March 26, 2015 at 1:06AM

    Use the balance transfer feature to pay for mortgage. Some card do not charge fee for balance do not get points, but you get the float and also it can boost your crcredit. So long as you pay that cc balance off I full every month to avoid interest.

  2. Mark March 13, 2015 at 6:09AM

    Okay! I think I got it! You use the credit card to buy supermarket gift cards. You then use the supermarket gift cards to buy a money order from the super market.

  3. Nosmas March 4, 2015 at 3:12PM

    Using your credit card to earn rewards is the dumbest idea ever. It only helps credit card companies. The more you use the card to earn your so called rewards, the more interest you pay on the credit card balance. And I know some people pay off their balances every month, which in that case would work, but what are the chances of that always happening.

  4. Nosmas March 4, 2015 at 3:09PM

    Please. The only reason why lenders do not allow you to pay with a credit card is simply because people have figured out ways to pay off a 30 year fixed mortgage in 5 years, and I’m one of them. The amount of interest you would be saving is so tremendous that it doesn’t benefit the lenders. It only benefits you, but hey, it doesn’t matter how many times you outsmart the lenders, eventually they will make sure whatever method you come up with will not be allowed.

    • mortgage March 5, 2015 at 9:34AM

      Hi did you pay off your 30 year fixed mortgage in 5 years? do you care to share? thanks.

    • robert March 15, 2015 at 6:36AM

      Could you explain to me how this would be done, and is it still do able..

  5. drew b February 8, 2015 at 7:54PM

    It’s actually free to pay rent with a credit card, at least up to 1500 a month or 3000 for couples.

  6. Jeanne January 24, 2015 at 11:29AM

    You cannot buy a money order with a cc.
    Smart charge charges 20.00

    If I average my rewards it would cost me 1000.00 (to charge smart in order to purchase a 325.00 round trip ticket in continental us) through my cc rewards program

    • Liz K March 5, 2015 at 9:41AM

      Why cant you buy a money order with a credit card? I have bought money orders at the USPS with my Visa bank card…. what is the difference?

  7. Slagle1 May 3, 2014 at 3:35AM

    If you can’t find a way to pay the mortgage with a c.c., then be creative, you can definitely use it for everything else in your budget;
    and whatever else that you have that you regularly pay for.

  8. 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.

  9. 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.

  10. 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! ! !

      • Vistor2 February 18, 2015 at 8:25AM

        It actually does help. They suggest taking a cash advance from your credit card to pay the mortgage and therefore earn points. “Moe” points out for Chase Sapphire, this won’t work.

  11. 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.

  12. 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.

  13. 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?

  14. 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

  15. 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?

  16. 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.

  17. 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.

  18. 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.

  19. 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.

  20. 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

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

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

    • no April 24, 2014 at 2:17PM

      of course not. what’s so awesome about it? Even if your proprietor allows you to use a credit card to buy a money order, many credit cards charge a significant fee for cash advances, such as money orders. They also may waive rewards for such transactions. It sounds like a lose lose proposition.

  22. 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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