AMEX Says: 'Pay the Mortgage with Plastic'

American Express Co. is announcing today that cardholders will be able to pay their mortgages using plastic — and get credit-card rewards for doing so.

American Home Mortgage Investment Corp. and IndyMac Bancorp Inc., two of the top 10 residential-mortgage originators, are the first lenders to sign up for the program.

Participants will be charged a one-time fee of $395 paid to the mortgage lender to cover account management. Once enrolled, the cardholder will earn cash back, airline points, or other types of rewards offered by their American Express card.

A cardholder with a $2,500 monthly mortgage would amass 30,000 card points a year.

Source: The Wall Street Journal, Lingling Wei