Balance transfer to pay mortgage?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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scooterdaddy52
 
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Balance transfer to pay mortgage?

Postby scooterdaddy52 » Wed Jan 09, 2013 1:21 pm

Can I use a balance transfer to pay down on my mortgage?


trumpet-205
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Postby trumpet-205 » Thu Jan 10, 2013 5:33 pm

Why do you want to use a credit card to pay down a mortgage?

Assuming you have a valid reason, I take it your mortgage balance will be much greater than your credit card limits. You can't do it unless the balance is smaller than your credit card limit.

Even if you can do it, you have to pay 3 to 5% of transfer fee. There is also the question of whether the transfer request can be approved, since the amount is large.
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jrv
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Postby jrv » Thu Jan 10, 2013 10:04 pm

scooterdaddy52 wrote:Can I use a balance transfer to pay down on my mortgage?


I don't think that is possible, but if it were, it's a terrible idea. Not only will you be paying a 3 to 5% balance transfer fee, but one simple mistake & you could be stuck paying almost 30% interest on your balance.
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cashback
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Postby cashback » Thu Jan 10, 2013 10:38 pm

What I think he was going for here was take a chunk out of his mortgage by balance transfer and take advantage of a 0% balance transfer promo. If he has a 6%apr mortgage and he takes a chunk out he can pay within the promo period he would only be paying 3% (the transfer fee).

But I don't think this is possible anyways. Not a bad thought though.
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birdman22
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Postby birdman22 » Wed Feb 20, 2013 3:05 pm

This isn't an option, because a mortgage would be a secured loan (backed by collateral) while most all credit cards generally speaking are unsecured loans.



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