FSD: Thanks, I should have mentioned that on my second, it’s fixed for 30 due in 15 (I think that’s the lingo).

I looked at my documents for the 1st.
ARM: Yes
Margin: 5.5%
Index: 3.5%
Periodic Cap: 1.0
Lifetime Cap: 6.0
Rate Floor: 3.5

I have to say none of this was talked about during the loan process, just that it was 10 years before I had to pay principal and that was a long time. No worry about the “reset thing” I would refi in 2 yrs. Doh. From my understanding this means when it resets I’m going to pay 9%? And that I’m not attached to the Libor?
Ouch, if the house isn’t worth over 500k at that time, there’s no way I will keep making payments, even if I could. Hopefully things will get worked out before 2011 though. I’m going to start exploring my options throughly, and will not make any rash decisions.

PS I have no idea what the mortage company said was my income, they just “took care of that”