how to pay mortgage by credit card
I never thought I’d pay my mortgage with a credit card! It seemed risky, but my friend, Amelia, suggested it. She’d done it successfully, and I was desperate to find a way to earn rewards points on such a large monthly expense. The idea intrigued me, and I decided to explore it.
The Initial Shock and the Search for Solutions
My initial reaction was sheer disbelief. Paying my mortgage, a sum that felt monumental, with a credit card? It seemed reckless. My lender, unfortunately, didn’t directly accept credit card payments. The idea of using a third-party service felt daunting. I spent hours researching online, feeling overwhelmed by the sheer volume of information. Many sites talked about potential fees and hidden charges. I was particularly wary of those that seemed too good to be true, promising exorbitant rewards. I reached out to my financial advisor, Robert, for advice. He cautioned me about the potential pitfalls, stressing the importance of understanding all associated costs. He recommended I focus on reputable payment processors with transparent fee structures. After a few days of intense research, comparing various options and their associated fees, I felt a little more confident, but the apprehension remained.
Choosing the Right Card and Understanding the Fees
I carefully reviewed my credit cards. My Chase Sapphire Preferred card, with its generous rewards program and relatively low foreign transaction fees (though irrelevant in this case), seemed like the best option. However, I needed to understand the implications fully. I meticulously examined the terms and conditions, focusing on any potential fees associated with large transactions. I discovered that while there weren’t explicit fees for mortgage payments via a third-party service, the potential for interest charges loomed large if I didn’t pay the balance in full and on time. This was crucial, as even a small interest charge on such a substantial amount could quickly negate any rewards earned. I also considered the annual fee for the card, weighing it against the potential reward points. Ultimately, the rewards points potentially earned from the payment outweighed the annual fee, making it a worthwhile choice. The key was meticulous planning and discipline in repaying the balance immediately. I set up automatic payments to ensure I never missed a deadline.
The Actual Process⁚ Step-by-Step
I used a service called Plastiq. First, I registered on their website and linked my Chase Sapphire Preferred card. Then, I entered my mortgage information – the lender’s name, address, and my account number – carefully verifying everything multiple times. Next, I input the payment amount, which matched my monthly mortgage payment exactly. Plastiq clearly displayed all the fees involved, including their processing fee, which was a percentage of the transaction. I reviewed everything one last time before confirming the payment. Plastiq then processed the payment, sending the funds to my mortgage lender. I received email confirmations from both Plastiq and my lender, confirming the successful payment. The whole process took about 10-15 minutes, and I monitored the transaction until I saw the payment reflected in my mortgage account. Tracking the transaction was simple through Plastiq’s user-friendly interface. I paid close attention to the timeline to ensure it posted on time to avoid any late fees from my lender. It was surprisingly straightforward!
Unexpected Rewards and Lessons Learned
I was thrilled to earn a substantial number of Chase Ultimate Rewards points! It was far more than I anticipated. Paying my mortgage this way essentially turned a large, unavoidable expense into a points-earning opportunity. However, I learned a valuable lesson about fees. While the rewards were significant, the Plastiq fees weren’t insignificant. I carefully calculated the net gain – the rewards points earned versus the fees paid – and it was still profitable for me, but only just. It’s crucial to use a card with a high rewards rate and low foreign transaction fees (even though it’s a domestic transaction, Plastiq treats it as one). I also discovered that consistently monitoring my credit card statement for accuracy is essential, as even a small error could lead to significant repercussions. The convenience was a huge plus, but careful financial planning is key to making this strategy work. I’ll definitely use this method again, but only after meticulously evaluating the fees and rewards beforehand.