Online payment is the fastest way to send money to your lender or landlord, and most accept it now
You can pay your mortgage or rent online through your lender's website, their mobile app, or a third-party payment processor. Most lenders let you set up automatic payments so the money leaves your account on the same day each month. You can also make one-time payments whenever you want — useful if you want to pay extra toward principal or catch up on a missed payment.
The main advantage is speed: online payments typically post within one to three business days, compared to five to ten days for a mailed check. You also get an instant confirmation number and a record of every payment, which matters if there's ever a dispute about whether you paid.
The tradeoff is that you need to know your account number and routing information, and you have to trust the website or app you're using. A few lenders still charge a small fee for online payments, though most do not.
Key Takeaways
- Online payments post faster than checks and give you an immediate receipt you can save as proof.
- Most lenders offer automatic monthly payments at no cost, which removes the risk of forgetting to pay.
- You can make extra payments online anytime to pay down principal faster or catch up on arrears.
- Always pay through your lender's official website or app, not through a link in an email or text message.
- If your lender does not offer online payment, you can use a bill-pay service through your bank instead.
How to set up online payment with your lender
Log into your lender's website or download their mobile app. Look for a section called "Make a Payment," "Pay Now," or "Payments." You will need your loan account number, which appears on your monthly statement or in your loan documents.
Enter the amount you want to pay and the date you want it to post. If you want to set up automatic payments, select that option and choose whether you want the payment to happen monthly, bi-weekly, or on another schedule. You will need to provide your bank account number and routing number so the lender can pull the money from your account.
After you submit, you should see a confirmation number on the screen. Write it down or take a screenshot. The lender will also send you a confirmation email. Keep both for your records.
What to do if your lender does not offer online payment
Some smaller lenders or loan servicers do not have their own payment portal. In that case, you can use your bank's bill-pay service instead. Log into your bank's website or app, find the bill-pay section, and add your lender as a payee. Enter your loan account number in the memo field so the payment gets credited to the right account.
Bill-pay through your bank works the same way as paying online through the lender: you choose the amount and the date, and the bank mails or electronically transfers the payment. It usually takes the same amount of time to post. The advantage is that you have one place to manage all your bills.
Call your lender before you use bill-pay for the first time to confirm they accept payments this way and to ask where the payment should be sent. Some lenders have a specific lockbox address for bill-pay payments.
Automatic payments versus one-time payments
An automatic payment is set up once and repeats on the schedule you choose — usually the same day each month. You do not have to do anything after the first setup. The money leaves your account automatically, and the lender receives it on time every month. This is the safest way to avoid late payments.
A one-time payment is a single payment you make whenever you want. You might use this to pay extra toward principal, to catch up if you missed a payment, or to pay off the loan early. One-time payments give you more control but require you to remember to make them.
Many homeowners use both: they set up automatic payments for their regular monthly payment, then make one-time payments when they have extra money. Your lender will apply the extra payment to principal, which reduces the total interest you pay over the life of the loan.
Fees and timing for online payments
Most lenders do not charge a fee for online payments made through their website or app. A few charge a small fee — usually $1 to $5 — if you want the payment to post the same day or next day instead of waiting the standard three to five business days. Ask your lender about their fee structure before you set up payment.
If you use your bank's bill-pay service, your bank may charge a fee. Check your bank's fee schedule or call them to ask. Many banks offer bill-pay for free to customers with certain account types.
Timing matters if you are close to a late-payment deadline. Online payments typically post within one to three business days, but if you are already late, the lender may have already reported it to the credit bureaus. Pay as soon as you can, but do not assume an online payment will erase a late payment that has already been reported.
Security and safety when paying online
Always pay through your lender's official website or app, never through a link in an email or text message. Scammers send fake payment notices that look like they come from your lender but actually direct you to a fake website where they steal your bank information.
If you receive an email or text asking you to pay, go directly to your lender's website by typing the address into your browser yourself, or call the phone number on your loan statement. Do not click any links in the message.
Your lender's website should use encryption, which you can see by looking for a padlock icon in the address bar and a URL that starts with "https://" rather than "http://". This means your information is scrambled so hackers cannot read it.
What to do if your online payment does not post
If you made a payment and it has been more than five business days and the lender's website still shows it as unpaid, contact the lender right away. Have your confirmation number ready. The lender can look up the payment and tell you whether it is still processing or whether something went wrong.
If the payment was rejected — usually because of insufficient funds in your bank account — the lender will send you a notice. Make the payment again as soon as you can. A rejected payment may be reported as late even though you tried to pay on time, so call the lender to explain what happened.
Keep your confirmation numbers and screenshots for at least one year. If there is ever a dispute about whether you paid, these records prove you did.
Frequently Asked Questions
Can I pay my mortgage or rent with a credit card online?
Most lenders do not accept credit card payments directly because they have to pay a processing fee. Some allow it but charge you a fee of 2 to 3 percent of the payment amount. It is usually cheaper to pay from your bank account. If you want to use a credit card to build rewards, check whether your lender accepts third-party payment processors like Plastiq, which charge a fee but may still be worth it depending on your rewards rate.
Is online payment safe?
Online payment through your lender's official website or app is as safe as online banking. Your information is encrypted and your lender has security measures in place. The main risk is paying through a fake website, so always go directly to your lender's site rather than clicking a link in an email or text.
What happens if I pay online but the money comes out of my account twice?
This is rare but can happen if you accidentally submit the payment twice or if there is a technical glitch. Contact your lender immediately with your confirmation numbers. They can reverse the duplicate payment and return the money to your account, usually within three to five business days.
Can I change or cancel an online payment after I submit it?
It depends on when you submitted it. If the payment has not posted yet, most lenders let you cancel it through their website or by calling customer service. Once the money has left your account and posted to your loan, you cannot cancel it, but you can request a refund if it was a mistake.
Do I need to keep paying online if I set up automatic payments?
No. Once automatic payments are set up, the money leaves your account on the schedule you chose and you do not have to do anything. You can log in anytime to check that the payment posted, but you do not need to make a new payment each month.