What can your mortgage do for you?
Posted Oct 5, 2007 @ 5:15 pm, Viewed by 475 Visitors, Read 480 Times.
Have you ever wondered what your mortgage can do for you? Well, of course, real estate can always be seen as an investment, and there is that tax deduction, but beyond that, a mortgage seems like a big drain on the bank account. If you are smart about it, however, you just might be able to turn the tables and make your monthly payments get something for you in addition to that dream house that you are making monthly payments on.
Recently American Express unveiled a plan that allows consumers to put their monthly mortgage payment on their American Express card. At first glance the one-time fee of $395 seems kind of stiff, but for disciplined consumers who pay off their card every month the $395 fee would become a moot point within a year or so, and the cardholder would reap the benefits of whatever perks their reward plan offers. In my area, where home prices on the Marin MLS can as easily be over $1,000,000 as not, mortgages are hefty and the relatively large monthly payments could rack up the reward points fast. I’ve got to admit – I’m tempted to look into this. I have to make the monthly mortgage payments anyway, and I’m thinking that I might as well make the most of it.
If you are concerned about tax implications, as long as you itemize, the taxes on your mortgage are deductible whether you pay with a credit card or in a more conventional manner. Be aware, however, that if you don’t pay your card off each month any interest charges you incur on the card are not deductible.
This is a relatively new idea, and does have the potential for disaster if misused. We, as a nation, can be pretty irresponsible about using credit. If you don’t have a handle on your spending this kind of plan could spiral out of control fast, but for those of you who are meticulous about paying off credit cards in full each and every month, this could be a great plan. It will be interesting to watch and see if other credit card companies jump on board. In the meantime, I just might give American Express a call.
Recently American Express unveiled a plan that allows consumers to put their monthly mortgage payment on their American Express card. At first glance the one-time fee of $395 seems kind of stiff, but for disciplined consumers who pay off their card every month the $395 fee would become a moot point within a year or so, and the cardholder would reap the benefits of whatever perks their reward plan offers. In my area, where home prices on the Marin MLS can as easily be over $1,000,000 as not, mortgages are hefty and the relatively large monthly payments could rack up the reward points fast. I’ve got to admit – I’m tempted to look into this. I have to make the monthly mortgage payments anyway, and I’m thinking that I might as well make the most of it.
If you are concerned about tax implications, as long as you itemize, the taxes on your mortgage are deductible whether you pay with a credit card or in a more conventional manner. Be aware, however, that if you don’t pay your card off each month any interest charges you incur on the card are not deductible.
This is a relatively new idea, and does have the potential for disaster if misused. We, as a nation, can be pretty irresponsible about using credit. If you don’t have a handle on your spending this kind of plan could spiral out of control fast, but for those of you who are meticulous about paying off credit cards in full each and every month, this could be a great plan. It will be interesting to watch and see if other credit card companies jump on board. In the meantime, I just might give American Express a call.
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