- Overview
- Home Loan
H&R Block Bank is here to meet your borrowing needs.
H&R Block Bank offers overdraft lines of credit and certificates of deposit loans. In addition we offer loans that are simple and easy to understand. We look forward to helping you with your borrowing needs.
Loan types
Residential Mortgage Loans
- Adjustable Rate Mortgages
The interest on an Adjustable Rate Mortgage (ARM) is not fixed, it changes during the life of the loan in line with movements in an index rate.
The interest rate on an ARM is made up of two parts: the index and the margin. The index is a measure of interest rates generally and the margin is an extra amount that the lender adds. For example, if the interest rate for the financial index is 5.5% and your margin is 2.25%, then your rate at the time of adjustment would be 7.75%.
When rates change, ARM monthly payments increase or decrease at intervals determined by the lender. However, the change in the monthly payment amount is usually subject to a Cap. You may also see ARMs referred to as AMLs (adjustable-mortgage loans) or VRMs (variable-rate mortgages).
- Home Equity Loans A borrower uses the equity in their home as collateral for a Home Equity Loan. These loans are useful to finance major expenses such as home repairs, medical bills, or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity.
- Fixed Rate Mortgages A fixed rate mortgage guarantees the interest rate will remain the same over the life of the loan. This offers you the security of knowing the principal and interest portion of your monthly payment will not change.