There appears to be an “affordability crisis,” and a new fintech company called Mesa is looking to solve the problem.
It’s no secret that home prices are sky high, and when combined with much higher mortgage rates and things like high homeowners insurance, it can put home ownership out of reach.
Or at least, it made it harder for average Americans to keep up with that demand. To ease that burden, the company has introduced a suite of products that make homeownership more affordable.
Ironically, this new company operates in Austin, Texas, one of the hardest-hit housing markets in the country.
The popular metro area has suffered from a housing glut as many remote tech workers pack their bags and head back to where they came from.
What is Mesa?
Referred to as the “First Homeowners Membership Platform,” it is actually a collection of offerings aimed at making home ownership cheaper and more valuable.
This means putting better mortgage offers in front of potential home buyers and giving them rewards when they make housing-related purchases.
Their first two products are the Mesa Mortgage Marketplace and the Mesa Homeowners Card.
The marketplace appears to work similarly to Zillow’s mortgage marketplace. Potential home buyers and current homeowners looking to refinance can compare lenders in one place.
In addition to potentially getting a lower rate and/or lower closing costs, they can also earn a portion of the loan amount in the form of reward points.
Those who take out a loan through the marketplace get 1% back in bonuses.
For example, a $500,000 loan might result in 5,000 reward points, which can be redeemed for things like travel or even reinvested in a home by paying off the mortgage.
It is important to note that Mesa is not a mortgage lender or broker, but rather serves ads to lenders and brokers across the marketplace and earns fees.
Mesa Homeowners Card
Their other major product at launch is the “Mesa Homeowners Card,” which they refer to as The first premium credit card designed specifically for homeowners..
We’ve seen other credit cards focused on homeowners in the past, but this one seems to stand out for one reason or another.
As with other cards before it, cardholders can earn rewards when they use the card to pay their monthly mortgage payments.
But it goes further by offering additional points on things like homeowners association fees, utilities, home repairs, and other home-related services like insurance.
per TechcrunchYou’ll earn 1X when you use the card to pay your mortgage, 2X on gas and groceries, and 3X in the household services category.
I believe you will be able to use the Mesa Homeowners Card to pay your mortgage, although credit card issuers typically do not allow this.
Mesa has partnered with Visa on this deal and has staff previously at companies like American Express, Capital One, and Beltwhere the latter wanted to reward customers for paying off their mortgage with a credit card.
Belt Bank currently allows cardholders to pay their rent and earn cash back without being subject to transaction fees.
They planned to do the same to pay off their mortgage, but it never happened. Will Mesa succeed where others have failed? It remains to be seen, but it has always been a challenge.
Ultimately, mortgage lenders don’t like the idea of homeowners paying off their mortgage with a credit card, and for good reason.
Mesa Homeowners Network
Finally, Mesa has partnered with “brands you love” to offer exclusive discounts and deals.
This may include discounts on memberships at Costco and other companies that offer homeowner-focused services.
Additionally, the company plans to expand membership rewards to include HELOC loans, home equity plans, insurance, and other financial products for homeowners. An app will also be launched soon.
The goal is to make home ownership more affordable and more rewarding by offering discounts and cash back on all related expenses.
Knowing that cost pressures today go beyond the principal and interest on mortgages, this may provide some relief to families in financial distress.
For me, the question still remains as to whether they will be able to allow users to pay off their mortgage using a credit card.
If they can pull that off, it might be worth it. If not, you could argue that credit card points earned from other issuers can be converted to cash and used for a mortgage in the same way.
For example, I can currently cash out through the Chase Ultimate Rewards program at 1 cent per card and use the extra payments to pay off my mortgage. But I can’t use my Chase card to pay off my mortgage.
So, they’re going to need something that really sets them apart and adds value compared to the options out there. I might consider it if they let me pay the mortgage every month.
In addition to earning 1% per month, I will get a grace period to pay off my mortgage payments before payment is due.
Current product On the waiting list You can register through their website if you are interested.
Prior to creating this site, I worked as an account manager for a wholesale mortgage lender in Los Angeles. My experience working in the early 2000s inspired me to start writing about mortgages 18 years ago to help potential (and current) home buyers better navigate the home loan process. Follow me on Twitter for the latest news.
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