304 North Cardinal St.
Dorchester Center, MA 02124
304 North Cardinal St.
Dorchester Center, MA 02124
PennyMac is one of the leading national home loan lenders, founded in 2008. This lender is a popular choice for getting a home loan, but what is it like in terms of paying it back in non-traditional ways?
Can you pay a PennyMac mortgage with a credit card?
No, you cannot pay a PennyMac mortgage with a credit card. While some mortgages allow for payment by credit card, PennyMac does not accept this form of payment. You must use one of the approved methods to make your mortgage payment, which include mailing in a check or paying online.
If you want to find out how to handle paying the mortgage with credit cards and what are your other options for making payments, keep reading. Everything important is answered in the text below.
You applied for a mortgage, and now it’s paying time. Let’s say you want to pay one or more mortgage installments with your credit card – is this something that you can do? There are lenders that allow you to pay with your credit card, but if you have a mortgage from PennyMac Mortgage, you’re probably wondering “can I pay PennyMac Mortgage with a credit card?”
Technically speaking, direct payments via credit cards are not possible in this situation – every mortgage book will tell you that. However, there is a way around it that will allow you to use your card to pay for the PennyMac mortgage.
If your mortgage lender were to accept direct credit card payments, they would expose themselves to various transaction fees from the credit card company. Obviously, this doesn’t make sense to them. Plus, this would mean that the lender is letting the customer swap a low-interest debt for another that’s high-interest and isn’t tax-deductible (while the mortgage is tax-deductible).
We all want to pay off our mortgages quickly – sometimes, that can mean resorting to credit cards. Third-party payment processors are the only solution you have in this situation if you absolutely must use your credit card. These services will allow you to use credit cards for basically any kind of payment – of course, with a proper transaction fee.
While the market is always changing, the most popular third-party service right now is called Plastiq. They seem to be about the only processor that’s worth your time and money. Plastiq charges a transaction fee of 2.85%, and its terms and conditions clearly state that you can’t use American Express and Visa cards for your mortgage payments.
You can use, however, MasterCard and Discover, but you never know when these companies may decide to stop allowing mortgage payments through Plastiq. That’s just one of many reasons why using Plastiq for mortgage installments can’t be a permanent solution – the rest of them will be explained in the text below.
As we all know, credit cards come with certain benefits and rewards, but there are some disadvantages to them as well. If you’re in a bit of trouble and you went as far as to wonder if a mortgage could expire, paying with a credit card can be the way to solve your problems.
Instead of considering whether you can mortgage a foreclosure, don’t forget that the mortgage is a lien, so you can lose your house if you don’t make payments. Credit card payments have both pros and cons in this situation, so here’s what you need to know.
|You can avoid late payments and late charges||You might have to pay credit card interest if you don’t pay off your credit card balance on time|
|You can earn a few extra weeks’ worth of interest by keeping your cash in savings, thanks to the grace period||The interest you earn won’t put you out ahead after you pay a 2.85% transaction fee to Plastiq|
|You can earn credit card rewards||Your credit card company might not treat the transaction via a payment processor as a purchase|
|You can pay an installment to avoid foreclosure||If you’re so late on payments that you’re facing foreclosure, adding credit card debt is not the best solution. Instead, think about a loan modification|
As you can see, paying an installment with a credit card isn’t the best way to go in most cases – it’s your last resort. However, here are the payment options that are better suited for you:
PennyMac is a publicly listed direct mortgage company that provides a variety of lending choices, including loans with minimal down payments and refinancing. They are among the largest lenders in the country, providing a large variety of different home loans to people in all states, except New York.
Although this lender has physical sales offices, loan applications can only be submitted by phone or online. The moment you are approved, you will be teamed up with a loan officer that will be your single contact all the way through underwriting and the closing process. This process can take up to 45 to 60 days. However, it can take less, if you are using PennyMac’s Mortgage Access Center, which is their online portal.
But does PennyMac accept credit card payments? Although you are not able to make a PennyMac mortgage payment with your card, there are other benefits to using their services. This lender periodically makes special offers, and these offers are aimed to help borrowers who are in need of a loan modification or facing hardship in any other way.
Paying mortgage installments with credit cards can sometimes be helpful, but we’ve established that it isn’t the go-to solution for making payments. Still, if you find yourself in a situation where you have to use third-party processors to pay your mortgage, it’s best if you know something about them. Do your research – the more you know, the better.
And don’t give up on considering PennyMac as your lender – although it’s not possible to make a PennyMac payment using your credit card, there are still many benefits to take into account.