GMAC's Residential Capital files $12bln debt shelf

WASHINGTON - GMAC Mortgage Group Corp's Residential Capital Corp., a real estate finance company, said on Thursday that it may periodically sell up to $12 billion in debt securities.

Residential Capital said in a shelf registration statement filed with the U.S. Securities and Exchange Commission that it plans to use the proceeds for general corporate purposes, which may include debt repayment.

GMAC Mortgage is a wholly owned subsidiary of General Motors Acceptance Corp., which is a subsidiary or General Motors Corp. (GM.N: Quote, Profile, Research)

Under a shelf registration, a company may sell securities in one or more separate offerings with the size, price and terms to be determined at the time of sale.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.