Paying mortgage with credit card?

LookinForaBargain_2

Hi guys,

I need some advice.

Does anyone know how you can pay your mortgage off with a credit card?

I assume bank don't allow mortgage payments using a credit card but I saw a video on 'The YouTube' where a lady explained how you could pay off your mortgage in half the time using the credit card. You pay double the mortgage balance using the card and then pay off the card balance each month using your wages thus avoiding any interest charge.

I know it seems too good to be true but thought I'd ask.

Thanks

amnblog

You should not be involving credit cards in paying your mortgage.

TadleyBaggie

LookinForaBargain wrote: »

You pay double the mortgage balance

Can't be right, did you mean pay double the monthly payment?

LookinForaBargain_2

Yes. Correct.

My wife and I have a fairly good income so we're not worried about debt because we can pay that amount off each month but I want to know if it was possible.

The lady is based in the US so I don't know what the rules are there.

It seems very clever but I'm sure there's a reason why it isn't that easy.

Here is the video for reference: https://www.youtube.com/watch?v=4GonTct2WMk

[Deleted User]

Most lenders only accept credit card payments if you're in arrears.

LookinForaBargain_2

I've just read a comment about banks not accepting credit cards as payment. Her reply was:

Link your credit card as overdraft protection to your checking account.

Is that clever or not feasible?

pinklady21

Well have not watched the video - but I assume you are asking if you can use your available credit on a cheaper credit card to pay off a more expensive mortgage rate?
In theory, you could withdraw cash from your credit card, use that to pay off a chunk of your mortgage, and then pay back the credit card every month. There will be a charge for the cash withdrawal, and you need to check what rate of interest would be charged by the CC co.
I assume you would then try to transfer the remaining balance on the credit card to another credit card with a lower or zero percentage rate?
While I would not do it.... it seems possible in theory.
If your concern is a high mortgage rate, then why not remortgage to a lower one? If you have spare cash each month, then why not just overpay on your existing mortgage and pay it off quicker that way?
I assume you are aware of any annual limits on the amount of your mortgage that you can repay?

TrickyDicky101

I haven't watched the video so don't really know the ins-and-outs of what is being proposed but you cannot avoid all the interest on your mortgage if you still owe the bank money! You will get charged interest on what you owe.

[Deleted User]

LookinForaBargain wrote: »

I've just read a comment about banks not accepting credit cards as payment. Her reply was:

Link your credit card as overdraft protection to your checking account.

Is that clever or not feasible?

Neither. More like gibberish.

ViolaLass

LookinForaBargain wrote: »

I've just read a comment about banks not accepting credit cards as payment. Her reply was:

Link your credit card as overdraft protection to your checking account.

Is that clever or not feasible?

That must be a US thing. It's not an option here (as far as I know).

LookinForaBargain_2

I can afford to over-pay but I can't afford to over-pay double each month.

She is saying that, if you over-pay using the credit card then pay off the credit card each month so you wouldn't be liable for interest because you pay off the full balance.

I appreciate there will be cash withdrawal charges but I'm trying to work out, over the long run, whether they will be worth it.

FYI - My mortgage interest payments are £600 a month (ouch). If I can pay off the mortgage in half the time (15 years) then I'd save £115k in interest.

If I had to pay cash withdrawal charges of say £50 a month, that's £9k over 15 years.

Is there something I'm missing here??? I swear it sounds too good to be true. :-)