A New Trend - Charging Your Mortgage Payments

Would you want to earn cash points for your credit card by charging your mortgage? American Express is now allowing cardholders to charge their mortgage payments. On Wednesday, May 23rd, American Express became the first credit card company to provide this.

Well, don't get too excited. You have to have a mortgage with American Home Mortgage Company. However, is this the beginning of a new trend?

American Express has a Cash back program with the American Express Blue Card. I have had it and it's pretty good. They also have other point programs. However, so far it appears to apply to the American Express Blue Card cash back program.

There are limitations for this program besides using American Home Mortgage Company as the lender. American Express is limiting this to cardholders it pre-authorizes before enrolling them in this program. American Express will examine the mortgagee every month before the payment is charged to insure that the loan is current.

This is also limited to new home prime loans or refinancing prime loans. This means no sub prime features which have become less popular these days with lenders. Adjustable Mortgages are also allowed, however, with limitations. This appears to be more geared towards those with good credit and conventional loan to value ratios. Higher ratios are given to government loans like FHA and VA. Those type loans are not permissible under this program. I have not seen any restrictions for investment loans or vacation homes. There could also be a minimum down payment above what you could normally get without this program. You would have to contact American Home Mortgage for further information on that.