Poway, you’re talking about the double whammy. The interest rate rising at the same time the teaser rate and option payment expires. Technically, you’re both correct. Interest rate alone going from 6-8 won’t do it. Going from teaser or losing their minimum payment will.

Jim, quick questions, I was under the impression that the option ARMs were more stringent than your example. I thought most were coming in with a 110% cap cuasing reset which in turn drops the reset to about 29 months. 2.5 years.