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Can You Pay a PennyMac Mortgage With Credit Card?

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.

A person typing on a laptop while holding their credit card

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.

Can You Pay PennyMac Mortgage With Credit Card? Here’s All the Relevant Information

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? 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.

Why Won’t Lenders Accept a Direct Credit Card Payment?

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).

Ways to Pay Your Mortgage With a Credit Card – Third-Party Payment Services

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.

 A person holding a small model of a house in their hand

When Is It a Good Idea to Pay the Mortgage Installment With Your Credit Card?

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.

ProsCons
You can avoid late payments and late chargesYou 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 periodThe interest you earn won’t put you out ahead after you pay a 2.85% transaction fee to Plastiq
You can earn credit card rewardsYour credit card company might not treat the transaction via a payment processor as a purchase
You can pay an installment to avoid foreclosureIf 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

What Are Other Ways of Paying Your PennyMac Mortgage?

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:

  • Online automatic monthly payments via PennyMac AutoPay – A simple and straightforward way to handle your installments. Payment will be automatically deducted every month on the date that you choose.
  • Online single payment – PennyMac has this option as well. All you need to do is log into your PennyMac account and choose “Make a Payment” – then click on “One-Time Payment.” The installment will be paid from your checking, savings account, or debit card.
  • Payments via Western Union – Another simple way to pay the mortgage. Find the nearest Western Union and bring your loan number – that’s the only thing you need to complete the payment at the service counter.
  • Payments by mail – It’s crucial to include the loan number when mailing the payment, don’t forget about that.
  • Payments by phone – PennyMac has an automated phone system that allows you to make one-time payments directly from your checking or savings account. 

Inform Yourself About Third-Party Payment Services If You Plan on Using Your Credit Card for Mortgage Installments

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.