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