New York has a lot of choices, with restaurants open 24 hours a day and a busy real estate market. But why should that be the end of the special options?
Think about the steps you take to buy a house or pay off your mortgage. Most buyers today are millennials, but buying a house might seem out of reach or less exciting than going on a trip around the world. You can improve your credit score and get points when you pay your mortgage with a credit card, but many lenders won’t tell you that.
Using a Credit Card to Buy a Home
If you want to get credit card points, you might want to pay your mortgage with a credit card. Homeowners are legally not allowed to use credit cards to pay their mortgages because of rules. There are, however, indirect ways to use a credit card to pay your mortgage, such as through third-party sellers like Plastiq.
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It’s usually not a good idea to use a credit card for the down payment or mortgage payments because the transaction fees are so high that they may not be worth it. You can still pay for things like inspections, appraisals, lawyers, insurance, and moving costs that are tied to buying a house. There are many ways to buy a house without using a credit card.
Pay With a Credit Card When Buying a Home
You might not believe it, but there are still a lot of ways to use plastic when you a house.
Inspection fees
Home buyers should always get an inspection, even if they aren’t required to. This way, they can be sure they know what they’re getting into before they make the big purchase. Since you hire the home inspector on your own, you can pick any inspector or inspection company you want.
Appraisal fees
When your lender calls an independent evaluation service to find out how much the house you want to buy is worth, they usually set up an appraisal. People who want to buy a house will have to pay an evaluation company a fee. You can use a credit card here.
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Attorney fees
New York is a lawyer-friendly state, so you should get a real estate lawyer early on to help you with the deal and closing. You can find law companies that take credit cards, but not all of them do.
Homeowners’ insurance
Before your mortgage lender will agree to give you a loan, you have to buy homeowners’ insurance and show them proof of purchase. At this point, it’s easy to use your credit card with the insurance company and program you’ve chosen.
Maintenance fees
Many co-ops and houses in New York City let you use a credit card to pay your monthly fees. These days, most people use payment sites like ClickPay, which gives you a great chance to earn more points.
Moving and furnishing costs
Getting furniture for your new home and hiring a moving company are both great ways to earn reward points on your credit cards.
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