What is a mortgage loan?
This is when a home loan is lent for you in a lump sum to cover a property. This loan is legally certain to the home through the attorneys who register your house loan. After this you need to pay back this mortgage loan over a given period of time. This is usually in the form of repayments.
In Nigeria, changes designed to the National Credit Act have meant that lenders are tightening their credit policies. People who are fortunate enough to be eligible for a a mortgage really are a chosen few who can afford to make repayments.
Paying a mortgage is an endeavour that needs a person to create a large number of financial sacrifices. Individuals are often given a chance to repay the borrowed funds over an agreed upon repayment period. In Nigeria, this may be 5 to 30 years.
Is there a choice for paying a home loan having a credit card?
A major drawcard for those who are considering paying a mortgage served by credit cards is the chance of taking advantage of being able to improve your points, getting cash return or frequent flier miles you get out of your card.
A major component that emerged throughout the credit crunch of 2008 has been the payment choice of utilizing a charge card for paying your home loan off. It was probably offered because people couldn't maintain their mortgage repayments.
In the South African market, most mortgage servicers tend not to allow borrowers to create direct payments via credit card.
What are the disadvantages?
Interest rates charged on home loan is generally a lot less than the rates you will pay for any charge card. So you may actually end up paying more.
Contact your house loan provider as well as your charge card provider to discover what your options are.
