In a first for the credit card industry, American Express is allowing some cardholders to charge their monthly mortgage payments.
American Home Mortgage will be the first lender to let eligible borrowers charge their mortgage payments on their American Express card. A one-time fee of $395 will be charged to enroll in the program.
American Express previously has allowed cardholders in luxury rentals to charge their monthly payments and those in luxury condos to charge their downpayments.
American Express said independent research found that many people wanted to pay their monthly mortgage payments by credit card. The research also found that a rewards program was a key factor.
In order to be eligible for the mortgage program, the cardmember must qualify and close on a loan and be pre-authorized to make the monthly payments.