Making the most of your mortgage payments
Posted Oct 12, 2007 @ 10:46 am, Viewed by 284 Visitors, Read 290 Times.
Last week I discussed the rather provocative program that American Express has implemented allowing homeowners to put their monthly payments on their AmEx card. Other credit card companies are coming up with some pretty clever reward schemes as well. As a realtor affiliated with Keller Williams in Marin, I see many of my clients take on some pretty substantial mortgages and am always interested in ways to help them maximize their mortgage dollars.
One that intrigues me is Citibank’s Home Rebate Platinum Select MasterCard. With this plan, the consumer can use reward points to pay down a mortgage, regardless of who the lender is. The really interesting thing about this program is that the cardholder can earn some pretty generous rebates ranging from 1% to 6% when using the Rebate Card to pay a variety of home related services such as utilities, Internet connections, cable, satellite, and other eligible services. Once a year the rebates will be sent to your mortgage company to be applied toward your principal.
Other banks that have jumped on this particular bandwagon include Wells Fargo and the nation’s largest mortgage lender, Countrywide. With a Wells Fargo Home Rebate Card, you can get a $25 rebate for every $2,500 you charge on the card. Countrywide’s plan is more generous – it will reduce your principal by $50 for every $2,500 charged on its Platinum Visa. For these two cards, the catch is that your mortgage needs to be with the bank issuing the card.
If used wisely, these programs can certainly help maximize every dollar you spend for your home. Remember, the key is pay it off, pay it off, pay it off. I just can’t say that too many times. If you carry a monthly balance, everything you’ve gained with rebates and paybacks goes right out the window. So, be clever, do your homework, and practice lots of financial self-discipline.
One that intrigues me is Citibank’s Home Rebate Platinum Select MasterCard. With this plan, the consumer can use reward points to pay down a mortgage, regardless of who the lender is. The really interesting thing about this program is that the cardholder can earn some pretty generous rebates ranging from 1% to 6% when using the Rebate Card to pay a variety of home related services such as utilities, Internet connections, cable, satellite, and other eligible services. Once a year the rebates will be sent to your mortgage company to be applied toward your principal.
Other banks that have jumped on this particular bandwagon include Wells Fargo and the nation’s largest mortgage lender, Countrywide. With a Wells Fargo Home Rebate Card, you can get a $25 rebate for every $2,500 you charge on the card. Countrywide’s plan is more generous – it will reduce your principal by $50 for every $2,500 charged on its Platinum Visa. For these two cards, the catch is that your mortgage needs to be with the bank issuing the card.
If used wisely, these programs can certainly help maximize every dollar you spend for your home. Remember, the key is pay it off, pay it off, pay it off. I just can’t say that too many times. If you carry a monthly balance, everything you’ve gained with rebates and paybacks goes right out the window. So, be clever, do your homework, and practice lots of financial self-discipline.
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