Comments on: Paying Your Mortgage With Your Credit Card: Worst Idea Ever?

By: miranda

miranda — Mon, 10 Nov 2008 02:37:15 +0000

Thanks for catching that. So, $1,350 x .0229 = $30.915. Since it will most likely be be rounded up, the result would still be $30.92. But I will do better in the future and attempt to avoid those minor mathematical problems. After all, decimal point in the wrong place can be devastating in some cases!

By: greg johnson

greg johnson — Sun, 09 Nov 2008 16:42:43 +0000

your math is wrong on the credit card transaction fee it is .0229 not .029

By: miranda

miranda — Mon, 22 Sep 2008 13:46:45 +0000

Good point, Debt! If you have a cash flow problem, it can ease things a little. But it is important to realize that if you can’t make your mortgage payments, and you can’t pay off the credit card, after a while, that will still catch up to you.

Also, @Heather, I’m not sure how long 0% intro programs will be around. The problem with the low balance transfer lifetime rate is that it only works one time. So if you tried to put monthly payments on the card, the 4% would only apply to the first month. I suppose if you had enough room to transfer most of a HELOC that would work, but it is important to note that card companies are offering lower credit limits in addition to the increasing scarcity of 0% offers.

By: Heather

Heather — Sun, 21 Sep 2008 17:21:53 +0000

Thanks Miranda for the tip on the 3rd-party payment fees. Pre-payment, I knew of. I did transfer my heloc 1st. I even set up auto-payment online. It really takes the thinking out of the process. Do you kow how long 0% interest promotions like these have been available? With the credit market crisis, do you see card companies getting rid of these intro programs? I need security in knowing that I can get 0% for at least 8 years. Another idea is that some cards offer 4% and lower for the life of any transfer. Not many home loan rates beat that.

By: Until Debt Do US Part

Until Debt Do US Part — Sun, 21 Sep 2008 09:11:36 +0000

I agree with Tim -if you are in a tight corner then it might not be the worst thing to do. It could give you some breathing space. Otherwise it is best avoided, the fees don’t make it worth it and you need to be to use Heather’s words ‘Truly financially responsible’

By: The Wallet : Feefest 08! Paying for Mortgages With Credit Card

The Wallet : Feefest 08! Paying for Mortgages With Credit Card — Tue, 16 Sep 2008 12:40:22 +0000

[...] Yielding Wealth did the math: For me, that means ($1,350 x 0.029 = $30.92 + $4.95 = $35.87. I could pay an extra [...]

By: miranda

miranda — Fri, 12 Sep 2008 11:40:42 +0000

An interesting process, Heather! You are right that such things are for the really responsible folks. It is also important to check for prepayment penalties, see whether your lender will let you put your mortgage on the credit card, and watch out for fees associated with third-party payment programs. Perhaps if you got a HELOC first — that would make it easier to do the balance transfer…

By: Heather

Heather — Fri, 12 Sep 2008 04:08:12 +0000

The trick is finding credit cards at 0% interest on balance transfers. Open multiple lines and transfer portions of your total mortgage onto each. Most card companies offer 0% for the 1st 12 months. At the end of the intro year, transfer all the balances to new lines of credit again at 0% interest. Three Rules: 1) research cards offering lowest transfer fees. 2) Always make the low 1% minimum monthly payment and never be late or you lose the 0%. 3) Nothing else goes on these cards. The beauty is, 100% of your payment goes to the principal balance. You pay off your home in 8-10 yrs vs. 30. Only for the truly financially responsible types.

By: miranda

miranda — Wed, 03 Sep 2008 20:52:31 +0000

Interesting idea…using the credit card to make payments until the problem is solved. Although I think that working with the bank in such cases is a better idea, if something can be worked out that way.

By: Tim

Tim — Wed, 03 Sep 2008 20:47:24 +0000

My girlfriends mom used to pay her mortgage with her credit card all the time until she solve her pre-foreclosure situation. Thats why I’m posting this blog on your site. I was shocked to find out that not many people know about this http://www.ForeclosureDVD.com and The Foreclosure Workbook.

I saw this TV commercial while on business in Texas. I hope you and your readers can benefit from this information. Apparently it was a promotion for a FREE workbook.

Keep up the great blogging!