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Shocking Surprises Still in Store in the U.S. Mortgage Meltdown

When it comes to the U.S. economy, people are already beginning to wonder if the problems have no end. But it turns out the crisis may be even deeper than most people think.

There is a second mortgage shock heading for the economy. Sub-prime mortgages were bad enough, but there were two other kinds of exotic mortgages that became popular before the housing bubble collapsed, called "Alt-A" and "option ARM." The option ARMs, in particular, lured borrowers in with low initial interest rates, but after two, three or five years those rates "reset" and went up. A mortgage of $800 dollars a month could easily jump to $1,500.

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