American Home Mortgage Corp. will be the first lender to offer the Express Rewards Mortgage program for eligible prime loans. American Express Cardmembers with qualifying new purchase or refinance loans with American Home Mortgage will pay a one-time fee of $395 to the lender for enrollment in the Express Rewards Mortgage program at the time of closing.
And that was a year ago. If you're getting 1% in rewards that means you have to spend $39,500 to make up the cost of it. Seems reasonable considering houses costs hundreds of thousands and you pay 3 or 4x that in interest over 15 to 30 years.
I know I read somewhere else a couple other companies now have arrangements with credit card companies for customers to pay their mortgage with a credit card. Anyone else think this is a bad idea? I know it doesn't prevent someone doing this indirectly because they could just take a cash advance or balance transfer since most B.T. offers just deposit cash in your checking anyway. I guess like anything else it's good but you're always going to have those few bad apples out there which will use it recklessly and screw it up for everyone else.