ORANGE COUNTY, Fla. -- Some consumers claim they were misled by a mortgage company that offered the cheapest rates in town and those consumers are now turning to the state for help.

When Action 9's Todd Ulrich went to confront Jeff Johnson about his company's full page newspaper ads, Johnson said, "I'm not here to talk to you."

The ads offered incredible mortgage deals with rates as low as 1 to 3 percent.

Government Mortgage Advice

Consumers we talked to say to read the fine print.

"It's past risky," said Tom Long, who canceled his application after he says Mortgage Planning and Loan Specialists of Colorado, that has a Metrowest office, would not answer basic questions. "(It's) dangerous."

An Orange County man, who wants to remain anonymous, did get a loan. He says he then was stunned by the first payment notice.

"I felt pretty foolish, and I was also pretty angry," said the man.

The company's initial disclosure statement shows the man's loan would have an interest rate just over 3 percent. And his monthly payment would have been about $1,400.

Instead his actual interest rate is more than eight percent and his monthly charges approached $3,000.

The company told him and later told Action 9, its ads offer payment rates, not interest rates, so consumers actually make a partial loan payment each month.

What you don't pay is added on to your principle. It's called negative amortization. It's a risky loan this consumer claims in a complaint to the state was initially hidden, then glossed over during the closing.

"They misrepresented what they were selling," said the consumer.

In a response to the state, Mortgage Planning and Loan Specialists wrote its ads meet all federal and state requirements, the nature of the loan was fully disclosed and no one was offered one percent to three percent interest rates.

Company's Response To Consumer

But when an Action 9 volunteer called about a mortgage and met with a salesman, that's exactly what she heard. It's also what Action 9's Todd Ulrich was later told.

Todd asked a company salesman, "This 3.25 is that a real interest rate?"

The salesman answered, "To my knowledge sir, yes."

One consumer says that tactic would cost him $60,000 in extra fees and payments.

He said, "At some point you have to trust somebody and I made the mistake of trusting these guys."

The state's finance office is investigating four complaints against Mortgage Planning and Loan Specialists.

The company has since offered to refinance at no charge the loan of the consumer who wanted to remain anonymous, and it says there have been only been a handful of complaints out of hundreds of loans.