Wait, we have offices somewhere?

@Chris Walters: Perhaps this explains your habitual tardiness.

@Ben Popken: Oh BURN!!

This number is somewhat inflated because it only applies to loans with private mortgage insurance. PMI is typically a requirement for mortgagors that have borrowed more than 80% of the value of their home, which is a more risky segment or mortgagors. They are also more likely to be affected by declining home prices, as is currently the case, since they have less equity in their home.

@Glomm Please stop with the concise and factual comments. Jeez give us a break.

Nobody wants to hear facts Glomm. We only want Glomm and domm headlines

I still can't figure out how all these people took out mortgages with full knowledge that these jump in payments would arrive, yet everyone acted surprised when it finally came time to up the ante.

Did they just figure that they would deal with it whenever it happened without giving it a second thought of how they were going to afford this jump in their mortgage payment?

77% increase? I heard a story that less than 1% of all mortgages go to foreclosure. A 77% increase might put that number to what? 1.3%? 1.5%? To me, it smacks of doom and gloom from the news media.

And to answer @Bignutty, there are people who can't live within their means. They refinance their house every 2 or 3 years, pulling the equity out and throwing more credit card debt at their house payment. In fact, "interest-only" mortgages are the last line of defense for those who can't meet their minimum monthly credit card payments. People thought that the economy and their homes would rise, and that in 3 years, they'd just refinance again. They didn't think that their homes would de-value, and that they wouldn't have to deal with that balloon in interest rates that comes with a 3 year ARM. Frankly, these people need to stay and make their payments, and hope that they can sell and get out without being upside down on their mortgage. People were stupid. I never believed in the 3, 5, or 7 year ARM. Too risky. But the sub-prime lenders would give you allow you to finance 90% of the value of the home, and with "friendly" appraisals, they'd pull all kinds of equity out. Now they're forced with paying it back.