New Data

This chart goes further out than previous charts. Notice how the subprime resets give way to option ARM resets in 2010 and 2011. Option ARMS can blow up earlier by "recasting" to fully amortizing or PITI (principal+interest+tax+insurance) when the LTV (Loan to Value) ratio exceeds a certain threshold (usually 110-125%) due to minimum interest payments getting added to the principal and/or declining house values.