GMAC Launches Equity Rewards MasterCard

GMAC Mortgage Corp., Horsham, Pa., has announced the introduction of a no-annual-fee credit card that helps cardholders pay down their mortgage via rewards for retail purchases.Holders of the GMAC Mortgage Equity Rewards MasterCard, issued by MBNA America Bank, earn one point for every dollar in net retail purchases charged to the platinum card, the company said. When a cardholder accumulates 2,500 points, $25 is credited automatically to the cardholder's mortgage principal with GMAC Mortgage. There is no annual limit on points or how many Equity Rewards can be used to reduce mortgage principal, the company said. "Paying even a few hundred dollars extra each year toward mortgage principal can save thousands over the life of a 30-year mortgage," said Rick Gillespie, chief marketing officer at GMAC Mortgage. For example, quarterly Equity Rewards payments of $50 on a 30-year, $150,000 mortgage with a 6.5% fixed annual percentage rate would save $16,975 and reduce the term of the mortgage by 17 months, the company said. GMAC Mortgage can be found online at http://www.gmacmortgage.com, and MBNA can be found at http://www.mbna.com.