Do You Earn Rewards on Closing Costs?
Why closing costs cannot go on a card
At closing, funds are paid by wire transfer or a cashier’s check to satisfy the lender and title company, and credit cards are not accepted for the down payment, loan fees, title, or escrow. Card networks and lenders do not allow financing a mortgage transaction on a card, so there are simply no rewards to earn on the main closing costs. This is the same reason a down payment cannot go on a card.
The small exceptions
A few home-buying costs sit outside the closing wire and can be paid by card if you arrange them directly, such as a home inspection, some application or credit-report fees, or movers after closing. Those earn your base rate, since none are a bonus category. Everything settled at the closing table itself, though, is off-limits to cards.
Focus rewards where they count
Do not expect to earn a bonus on a home purchase; the numbers are large but the payment method blocks it. Put the chargeable side costs on a strong flat-rate card, and if you are moving, those and other moving costs can help toward a welcome bonus. See options in best cash back cards.
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