Comments on: Pay Mortgage with Credit Card For Free http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html like a friend telling you about money ... Fri, 10 Feb 2012 17:31:35 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: john denver http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-7154 john denver Wed, 05 Oct 2011 04:12:26 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-7154 So you are going to float 6 weeks worth of payment for 30 years? Say your payment is 1200 dollars P&I earning 3% per year floated for 6 weeks at a time makes for 8.6 units of interest. multiply that out for 30 years and you get 1080 bucks for 30yrs. Or you could skip the dumb liability of a cc paying your mortgage. to do this and pencil you would need to buy one less mocha per 4.5 weeks, drive 3 miles less per week, use 15 less sheets of tp a day, you know what.... save 9.84 pennies a day and convince james to go shoot himself. So you are going to float 6 weeks worth of payment for 30 years? Say your payment is 1200 dollars P&I earning 3% per year floated for 6 weeks at a time makes for 8.6 units of interest. multiply that out for 30 years and you get 1080 bucks for 30yrs. Or you could skip the dumb liability of a cc paying your mortgage. to do this and pencil you would need to buy one less mocha per 4.5 weeks, drive 3 miles less per week, use 15 less sheets of tp a day, you know what…. save 9.84 pennies a day and convince james to go shoot himself.

]]> By: Debbie http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-6317 Debbie Thu, 31 Mar 2011 14:15:42 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-6317 I thought this might be a great savings plan... pay my mortgage with my credit card, set up automatic payment of my credit card, get 2% from Schwab on purchases to put into a CD or money market. I made a few inquiries and found what many others on this blog found (wish I had finished reading before spending the time). Mortgage payments can only be paid with credit cards if the lender accepts those types of payments. According to my lender, Wells Fargo, there is a law that prohibits the payment of debt with credit. I think the only way to get around that is a cash advance type payment, or bill pay service that FIA used to offer, which doesn't LOOK like a payment with credit to the receiver. As someone mentioned, cash advances often have big fees, or free offers are sporadic. I will only choose something that can be setup once and happen automatically, or it is not worth my time. Perhaps BofA stopped offering Bill Pay because of this same law? Has anyone found a credit card company that allows Bill Pay which allows rewards/cashback for mortgage payments? By the way, I get the whole float thing. The writer of the article wasn't suggesting getting into more debt to pay off debt. He specifically talks about a way to set up to ensure paying it off every month. The whole point was to use that float money to invest elsewhere. It sounds a big complicated for me to try but I get the concept. I thought this might be a great savings plan… pay my mortgage with my credit card, set up automatic payment of my credit card, get 2% from Schwab on purchases to put into a CD or money market.

I made a few inquiries and found what many others on this blog found (wish I had finished reading before spending the time). Mortgage payments can only be paid with credit cards if the lender accepts those types of payments. According to my lender, Wells Fargo, there is a law that prohibits the payment of debt with credit.

I think the only way to get around that is a cash advance type payment, or bill pay service that FIA used to offer, which doesn’t LOOK like a payment with credit to the receiver. As someone mentioned, cash advances often have big fees, or free offers are sporadic. I will only choose something that can be setup once and happen automatically, or it is not worth my time. Perhaps BofA stopped offering Bill Pay because of this same law?

Has anyone found a credit card company that allows Bill Pay which allows rewards/cashback for mortgage payments?

By the way, I get the whole float thing. The writer of the article wasn’t suggesting getting into more debt to pay off debt. He specifically talks about a way to set up to ensure paying it off every month. The whole point was to use that float money to invest elsewhere. It sounds a big complicated for me to try but I get the concept.

]]> By: WB http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-5673 WB Fri, 21 Jan 2011 21:39:05 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-5673 It WAS only good if you pay off your CC EVERY month in full, if you don't it is stupid to do this. If you do, you end up with an interest free loan for longer than you suggest, its not 5 days in your example. Mortage Due 10th CC Statement Closes 15th - +5 Days Payment is due on that statement on the 10th of the following month - + 25 Days You just received a 30 day interest free loan. I used this float to make an extra full month's payment when I started, that extra payment saved me thousands of dollars in interest over the life of the loan. It may seem small but every little bit helps. If you ever carry a balance however, this will burn you. It WAS only good if you pay off your CC EVERY month in full, if you don’t it is stupid to do this. If you do, you end up with an interest free loan for longer than you suggest, its not 5 days in your example.

Mortage Due 10th
CC Statement Closes 15th – +5 Days
Payment is due on that statement on the 10th of the following month – + 25 Days

You just received a 30 day interest free loan. I used this float to make an extra full month’s payment when I started, that extra payment saved me thousands of dollars in interest over the life of the loan. It may seem small but every little bit helps. If you ever carry a balance however, this will burn you.

]]> By: Irene http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-5672 Irene Fri, 21 Jan 2011 21:12:22 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-5672 s of November 2010, Fidelity investment visa card no longer offer bill pay options. That also applies to all auto payments scheduled prior to November 2010.  Not sure about other cards mentioned on the article.   s of November 2010, Fidelity investment visa card no longer offer bill pay options. That also applies to all auto payments scheduled prior to November 2010. 

Not sure about other cards mentioned on the article.  

]]> By: Sammy http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-5671 Sammy Fri, 21 Jan 2011 20:31:06 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-5671 It sounds great but yield little. Essentially you get a 0% loan in the amount of monthly mortgage payment. It doesn't make sense to keep the loan over CC due day, because of higher interest. That is about $3000 with 1-4% saving earned, or $30 - $120 a year for all the hassle. In the worst case, if your CC is due on 15th and mortgage due on 10th, you only get 5 day free cash. It sounds great but yield little. Essentially you get a 0% loan in the amount of monthly mortgage payment. It doesn’t make sense to keep the loan over CC due day, because of higher interest. That is about $3000 with 1-4% saving earned, or $30 – $120 a year for all the hassle. In the worst case, if your CC is due on 15th and mortgage due on 10th, you only get 5 day free cash.

]]> By: tim http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-5636 tim Sun, 16 Jan 2011 19:00:50 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-5636 This appears to be a great concept but does not appear to work. I have the fidelity card you mention and do not see a bill pay choice option for recurring payment. Please advise This appears to be a great concept but does not appear to work.
I have the fidelity card you mention and do not see a bill pay choice
option for recurring payment. Please advise

]]> By: fajriyansah http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-5173 fajriyansah Wed, 01 Dec 2010 05:03:23 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-5173 good articles good articles

]]> By: berach http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-5157 berach Mon, 29 Nov 2010 04:41:17 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-5157 hey the party is over no more paying bills with credit card its a shame was great while it lasted if there is anyone else with any suggestions please let us know hey the party is over no more paying bills with credit card its a shame was great while it lasted if there is anyone else with any suggestions please let us know

]]> By: thor http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-5056 thor Thu, 28 Oct 2010 14:20:00 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-5056 Well, I spoke to Fidelity CS - you won't be able to setup any new accounts after Nov 7th but you will be able to use existing ones till Feb 2011. I was advised to check with current mortgage company. Many say they don't accept credit cards payments but some do but don't advertise it. She gave me Bank of America example where you can use card of your choice to pay your monthly mortgage bill. Can anyone confirm this? Well, I spoke to Fidelity CS – you won’t be able to setup any new accounts after Nov 7th but you will be able to use existing ones till Feb 2011. I was advised to check with current mortgage company. Many say they don’t accept credit cards payments but some do but don’t advertise it. She gave me Bank of America example where you can use card of your choice to pay your monthly mortgage bill. Can anyone confirm this?

]]> By: WB http://thefinancebuff.com/pay-mortgage-with-credit-card-for-free.html#comment-5014 WB Thu, 21 Oct 2010 14:14:03 +0000 http://thefinancebuff.com/2009/01/pay-mortgage-with-credit-card-for-free.html#comment-5014 I received the same letter. I went ahead and scheduled out payments for the next year, just in case they are allowed to go through. I'm glad to see the letter wasn't just sent to me, however this is very dissapointing. I received the same letter. I went ahead and scheduled out payments for the next year, just in case they are allowed to go through. I’m glad to see the letter wasn’t just sent to me, however this is very dissapointing.

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