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Verdict: Home loans represent the most significant financial commitment that many consumers make. After all, even an inexpensive house in most parts of the country costs more than $100,000. That’s a lot of money to borrow, and to repay. Fifth Third Bank offers a credit card designed to help homeowners pay off their mortgage loans at a faster rate.
Overview: Homeowners with a Fifth Third Bank mortgage loan can participate in the company’s Homeowner Plus Value Package. This program allows homeowners to earn rewards points for common banking activities, such as using the bank’s Homeowner Plus Value Card. Cardholders will earn points every time they make a purchase using the card. After they accumulate enough points, they can redeem them to reduce their mortgage’s principal balance.
How This Card Works: It’s important to note that cardholders will have to spend a lot of money to reduce their mortgage principal significantly. After they earn 2,500 rewards points, Fifth Third Bank will automatically credit $25 toward their mortgage principal. Still, this card is an option for consumers who would normally make several charges in a given month. With this card, those charges will at least take away a small portion of their mortgage loan’s principal balance.
Travel and Shopping Benefits: Cardholders will earn two rewards points for every dollar that they charge at home-improvement and home-furnishings retailers. They’ll earn one rewards point for every other type of purchase that they charge.
Fees: The Homeowner Plus Value Card comes with an introductory interest rate offer of 0 percent on new purchases for the first 12 billing cycles. After this period ends, the purchase interest rate will adjust to 12.99 percent to 23.99 percent depending on cardholders’ credit scores. There is no annual fee with this card. Cash advances cost $5 or 4 percent of the advance amount, whichever figure is greater. The card’s late-payment fee stands at $35.
- Charges can help reduce your mortgage loan’s principal balance.
- Low interest rate if your credit score is good.
- No annual fee.
- Have to spend a lot for mortgage reductions.
- Purchase interest rate can soar to 23.99 percent if your credit is weak.