| The media is full of stories about how Option | | | | actually reduce the risk of loan default, because |
| ARMs and exotic mortgages are the scorage of | | | | default only happens when a borrower can't make |
| the real estate industry. Nothing could be further | | | | their monthly payment.Therefore any loan that |
| from the facts. Exotic loans have extended the | | | | allow this kind of payment flexibility should be |
| real estate boom, and possibly lower default rates | | | | seen as a positive for loan quality and stability, not |
| for marginal borrowers.Option ARMs are tools | | | | riskier?The consumer clearly understands the |
| when used prudently allow a borrower to control | | | | value to interest only and exotic payment |
| their cash out-flow and make payments fit their | | | | mortgages, this is why they have become the |
| income. In the past lenders required mortgages | | | | most popular loan options. But few consumers are |
| payment on their "monthly" schedule. Option | | | | being interviewed to defend why they choose |
| ARMs give the consumer the ability to pay | | | | these loans.Option ARM mortgages enable savvy |
| principal and interest when its best for the | | | | consumers to better manage their own personal |
| consumer.I believe the exotic loans are good tools | | | | cash flow.Bob Waun , Founder & CEO |
| for borrowers who know how to use them. | | | | Vacation Finance |
| Interest only payments allow a borrower to pay | | | | Vacation Finance is America's First Second-Home |
| a smaller payment when cash flow is low, and | | | | Lender, and believes in the benefits of real estate |
| pay down principal in better times. These loans | | | | ownership for all Americans. |