Honest Mortgage Answers

H & R Block

Ok....where to start?

I received a solicitation in the mail yesterday from H & R Block offering me a "debt-consolidation mortgage loan" that is SUPER EASY to get and I am approved for up to $150,000.00, call today! "SAVE THOUSANDS!!", it says. I am up for saving thousands....aren't you? Well, being the cautious consumer that I am, I decided to look for the disclosures. Always look for the disclosures!!!!!!! (I can't emphasize that enough.)

Guess what, on the back of this gracious invitation to apply, I find the terms of the agreement. APR - 12.39% for the first 2 years and 13.39% variable rate thereafter.....PLUS they expect me to pay up to 3 points, processing fees, title fees, appraisal fees, etc. HOLY COW! This is the loan from HELL! This is not a credit card folks. This is a MORTGAGE.

I don't care who you are, this is a BAD BAD BAD loan. Who can possibly benefit from this loan? NO ONE! The sad thing is, there are people who take it everyday. What makes this even worse is that H & R Block obtained my credit information and they KNOW my situation. It amazes me that they even have the nerve to even present this offer to ANYONE!

On a $150,000.00 loan, 3 points is $4500. On top of that, at the end of 30 years, the MINIMUM* total interest accrued would be $421,713.90. WOW! Sign me up. Sheesh.

*the rate is variable so if rates go up, so does the total paid interest.

Posted by Jason Lash at 11:06 AM