American Express to Allow Cardmembers Pay Mortgage with Their Cards

Posted by Sun on May 23, 2007
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News is out this morning that American Express (announcement from AMEX) will soon allow its card members to pay monthly mortgage with AMEX cards and earn rewards at the same time.

According to MarketWatch,

American Home Mortgage Corp. will be the first lender to offer the Express Rewards Mortgage program for eligible prime loans. American Express Cardmembers with qualifying new purchase or refinance loans with American Home Mortgage will pay a one-time fee of $395 to the lender for enrollment in the Express Rewards Mortgage program at the time of closing.

Details on how the rewards will be earned doesn’t seem to be available at this time, so it’s hard to say whether the $395 one-time fee is worth it or not. But if one dollar can earn one reward point as in their Membership Reward program, and 100 reward points can be redeemed for $1 gift card, then you will need at least to spend $39,500 on mortgage payments to make up the fee, which shouldn’t take long to reach. Then again, which part in the mortgage payment is eligible for rewards, the interests, the principals, or both? And will other lenders sign up for the offer as well? How about existing mortgages?

Anyway, as mortgage is the single largest bill we have to pay every month, I’d love to get a little bit back. With AMEX being the “first for the credit card industry” to offer such a program, it will be interesting to see how exactly it works out.

More information about this new offer can be found at Businesswire.com and CNNMoney.

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10 Comments
May 24, 2007

Paying mortgage with a credit card and earning rewards at the same time? It’s just cool and I hope it will work out. American Express have always been innovators in credit card industry and they keep on pleasing their customers. the only thing I’m suspecious about is the one-time fee. Is it really necessary to be imposed? Who will win from it in the most?

Posted by credit card compare
May 24, 2007

America has lost its mind. Why would you risk paying something you finance on credit ( a house) to finance it on another credit ( a credit card ) ? plus with the $395.00 fee. It is not worth the rewards. The cc company wins all the time.

Posted by Moneymonk
May 24, 2007

Moneymonk you must be crazy. Some people don’t carry a balance on their cards. In fact, the majority of AmEx customers don’t. Some people can afford to pay off all of the things that the charge every month, and for those who don’t…they should cut back their lifestyle….that simple.

Posted by NotAPoorRevolver
May 25, 2007

I’m with moneymonk on this — it sounds like a dangerous plan. One tight month and the next thing you know you’re paying interest on your mortgage to your credit card company.

Besides, I have to wonder how they must be jacking up regular rates to float all these rebate-type credit cards.

Posted by db
May 29, 2007

I’d be all over that. I know some places let you charge your rent as well. Talk about racking up cash back!

Posted by KMull
August 3, 2008

Wow, now this is a great post. I found it very informative and helpful. Hope you post more like these very soon.

Blog bookmarked.

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