Option ARMs
I saw on armcrash.com (not sure of his source) that 12% of mortgages originated in 2006 were option ARMs and that 80% of people with option ARM payments make the minimum payment, which actually increases the size of their loan.
Even if someone with good credit gets duped into taking one of these loans on, if they don't realize the severe impact of additional principal increases, I would think that this will lead to a lot of problems after this subprime stuff slows down.
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