Ditech Offers Mortgage Credit Card

Mortgage mogul Ditech has announced a new plan to remain competitive while inciting new business. The lender will offer a rewards credit card, with points going towards the mortgage�s principle.

Ditech is the master of the low closing costs mortgage; with offers of closings costing less than $400, one would think that the company had the market cornered. Even Ditech, though, has to rethink their way of doing business in the current market. The newest way of getting new business and keeping existing homeowners to stick with a Ditech mortgage? A credit card that uses its reward points to pay down the mortgage. The card is offered at the time a mortgage application is taken; for every 2,500 points accrued, $25 goes towards the mortgage�s principle.

Anyone who closes a new mortgage with Ditech, be it a purchase, refinance or home equity line of credit, is offered the card. Existing mortgage holders are being offered the same opportunity through mail offers. A similar offer through GMAC Mortgage, the parent company of Ditech, that was initiated in 2004 has had great results, with the �mortgage� credit card being used 40% more than usual rewards cards.