Can you pay your mortgage with a credit card?

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You probably pay for most bills — utilities, groceries, subscriptions — using your credit card. Why not put your mortgage on your card, too?

Many credit cards let you earn rewards for your spending. Your mortgage payment is often one of your most significant recurring expenses, so putting it on plastic may seem like an easy way to rack up points or cash back.

While paying your mortgage using a credit card is technically possible, it’s probably not the best idea. You’ll typically face fees and high interest rates, which can lead to debt if not managed properly. Here’s what you need to know about paying your mortgage with a credit card.

Can you pay your mortgage with your credit card?

Paying your mortgage bill with a credit card is possible, but it’s not as simple as swiping your card.

For one, many mortgage lenders don’t accept credit card payments. If your lender doesn’t accept credit cards, you’ll have to go through a third-party provider. These services also charge a convenience fee ranging from 2%-3% of the transaction amount.

These fees can add up and outweigh any benefits you might gain from using your credit card. Let’s say your mortgage payment is $2,500. If you use a third-party service charging 3% to process a mortgage payment, you'll pay an additional $75 in monthly fees.

Plus, you could face high interest charges if you don’t pay your credit card bill in full each month. Credit cards generally have higher interest rates compared to mortgages.

If you pay your mortgage with a credit card and carry a balance, you may pay more interest charges on your credit card debt than you would on your mortgage.

"If homeowners carry a balance from month to month, the interest charges can quickly offset any rewards earned," says Brian Quigley, owner of Beacon Lending, a mortgage brokerage.

So, while you can feasibly pay for your mortgage with a credit card, it’s often way more trouble than it’s worth.

Pros and cons of paying your mortgage with a credit card

So you can pay your mortgage with your credit card, but should you? Here are some advantages and disadvantages to doing so.

Pros

• You can earn rewards: If your credit card offers cash back or points, using it to pay your mortgage could help you earn rewards faster. Even if you only earn 1X points on each dollar you spend, you could easily earn 2,000 to 3,000 points each month, depending on the size of your mortgage payment.
• It’s convenient: Paying your mortgage with a card can be more straightforward, especially if you prefer managing your finances through a single payment method. It eliminates the need for writing checks or setting up separate automatic payments.
• You can avoid mortgage late fees: If you don’t have enough money to make your mortgage payment by its due date, charging this payment to your card could buy you time and help you avoid a late fee from your mortgage lender. But you could face even higher interest charges and fees if you don’t pay it off by your card’s due date.

Cons

• You’ll pay convenience fees: You'll often face high fees if you need to use a third-party provider to pay your mortgage with a credit card. Plastiq, for example, charges 2.9% to use a card to pay any bill, including mortgages. If your mortgage payment is $2,500, that 2.9% fee comes out to $72.50 in fees.
• You may face high interest rates: The average credit card interest rate is 20.66% (as of May 2024), compared to mortgage rates, which are around 7%. If you can’t pay off your mortgage by your credit card’s due date, you’ll start racking up high interest charges.
• It may impact your credit score: Using a credit card to pay your mortgage can increase your credit card utilization ratio, which may impact your credit score. High credit utilization can suggest a higher risk to lenders and could cause your score to drop.
• Most mortgage lenders don’t accept cards: Mortgage lenders rarely accept credit card payments directly. This means you’ll have to work with a third-party provider and pay a convenience fee. Additionally, some lenders may view these credit card payments as a sign of financial instability.

How to pay your mortgage with your credit card

If you’re still determined to use your credit card to make your mortgage payment, there are a few ways to do so.

Third-party services

You can sign up for a provider, like Plastiq, to pay for your mortgage with a card. These services act as intermediaries, processing the payment on your behalf and transferring the money to your mortgage lender. These services often charge convenience fees, typically a percentage of the overall amount.

Cash advances

With a cash advance, you can withdraw cash from your credit card to pay your mortgage directly. But this option is costly.

Cash advances come with cash advance fees, typically 5% of the total amount. You’ll also face higher interest rates — sometimes over 30% — which starts accruing the second the advance is approved.

Let’s say you take out a $2,500 cash advance to pay your mortgage and pay it back within two weeks. First, you’ll likely get hit with a $125 cash advance fee (or 5% of the total amount). Assuming your cash advance interest rate is 30%, you’ll pay an additional $28.77 in interest, bringing the total cost of your cash advance to $2,654. That’s an awfully expensive way to pay for a mortgage.

Should you pay your mortgage with your credit card?

In most cases, it doesn’t make sense to pay your mortgage with a credit card. Even if your card earns rewards, it often won’t outweigh the fees and potential interest you’ll earn.

However, there may be one situation when paying your mortgage with a card makes sense.

If you don’t have enough money to pay your mortgage on time, using your credit card can help you avoid late fees from your lender, says Brandon Robinson, president of JBR Associates. It could also keep you from falling behind in your mortgage payments.

For example, if your paycheck won’t arrive until after the first of the month, you can use your card to make a mortgage payment. Once your paycheck arrives, you’ll pay off your card.

But you should consider this a last resort and have a plan to pay off your card balance.

“You have to be disciplined to not use this method for consecutive months, or you risk falling deeper into debt and worsening your financial situation,” Robinson says. “Other than a financial emergency, I would not recommend using a credit card to pay your mortgage.”

The bottom line

Paying for a mortgage on your credit card is not only a hassle, it can be expensive, too. Because of that, it rarely makes sense to use your card to make your mortgage payment.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.