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Options Mortgage
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   Types of Loan Programs-> Pay Option ARM, Pick-a-Payment, Cash Flow LoanMessage format
Posted 12/31/2004 6:49 PM (#8)
Subject: Options Mortgage
I am very confused about what to do and would like some pros and cons regarding a mortgage product, which was presented to us. We have a huge amount of debt, in excess of $100,000. We have no savings and have made a concious decision to TURN THINGS AROUND. We have a home, which we owe approximately $363,000. We recently had it appraised and it appraised at $471,000. The question is: In our situation, would it be better to get an options mortgage rather than a fixed mortgage? This would put about $1000 extra in our pockets per month. The scary thing is that after 5 years, it reverts to an ARM and I suspect interest rates are only going to rise. We were also considering a fixed rate mortgage with cash out. Being that our home is our only savings account and it will be several years before we see the light at the end of the tunnel, which would be the smarter solution, both short term and long term? PLEASE ADVISE!!!
Cindy Whetzel
Posted 1/1/2005 2:13 PM (#10 - in reply to #8)
Subject: RE: Options Mortgage
This is Pete Wetterhall at Valhalla Mortgage Corporation. It would definately be best for Ms. Whetzel to get a 30 year fixed instead of an ARM while rates are still historically low. Like she said, with the 5/1 ARM the rate will start adjusting in 5 years. There is now doubt in my mind that rates will be considerably higher in 5 years. With rates so low, it would only make sense to do a 30 year fixed. For more information, Ms. Whetzel can go to our web site at, or call me toll free at 877-737-8251.
Pete Wetterhall
CEO, Valhalla Mortgage Corp. :)
Dave Linder
Posted 1/1/2005 4:26 PM (#11 - in reply to #8)
Subject: RE: Options Mortgage
You could always select an interest first mortgage instead which will give you most of the savings and a fixed rate for the entire 30 year term. Check out our website at
You can reach me directly for a comparison at 877-854-6712 x 103
Dave Linder
Operations Manager
Franklin Bank
Duke Ngueyn
Posted 3/4/2005 6:55 PM (#79 - in reply to #8)
Subject: RE: Options Mortgage
What state are you in? The reason for asking is depending on the state, equity growth rate is different. It appears that the value of your house is good and the growth rate is good.
You are in a situation that you need to get out of. I suggest the Option Arm. It allows you to choose the monthly payment that you want. Even after the 5 years, refi again.
During the 5 years that you have, pay the minimum, interest only, 15 year payment or the 30 year payment. It will allow you to save money, catch up on bills or just plain pay them off.

I can answer more question that you have. Call me at 800-523-5363 ext 3395.
Posted 3/28/2005 6:36 PM (#142 - in reply to #8)
Subject: RE: Options Mortgage
I would choose the option arm payment, for a couple of reasons. Yes, fixed rates will be higher in five years, based on the current economic trends. However, if you go with the World Savings product, you can convert to a fixed fannie mae product in 3 years, or you can continue paying the minimum payment for up to ten years, or the third option, you can refi in to another option arm product if the rates are too high. Given the loan amount you are talking about, cash flow is king, therefore the option arm product is the best. If your income is substantial enough to not care about the amount of the monthly payment, I would go with a fixed product. But, with the option arm, namely World's product, they carry a prepayment penalty which allows you to pay as much as 20% of the principle balance each year without being penalized. This said, you could take the savings over a fixed rate product, apply it to principle, and pay your loan off much earlier than you would with a fixed product with the higher payment. Not to say the fixed products are inferior to the option arms, they are not. But being someone who invests in property, I can say from experience the option arm is superior when speaking in terms of total cash flow. If you have questions about the World product, or any other lender's products, call me. My name is Grant Gentry, I am the Asst Branch Manager at Redwood Financial in Sacramento, CA. my number is (916) 927-4000.
Big Bank Hank
Posted 4/1/2005 12:46 AM (#155 - in reply to #8)
Subject: RE: Options Mortgage
What scares me is that you have 100K in other debt. I don't want to get into your personal financial situation on a public forum...but how did you do it? I would like to hear your situation. I may have a solution. Please call me at 888-811-9545 or email me at
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