You probably did not notice or understand, but your ARM (adjustable rate mortgage) is most likely tied to the "LIBOR" (London Interbank Offered Rate) rate. This is the rate banks charge each other for loans between banks. Since this credit crisis began a few week ago this rate has gone from 3% to 4.4%. In the "real world" this means if you have an ARM that will be adjusting soon, you will be looking at somewhere in the 18% range increase in your monthly payments. So, if your current payment is $1000 per month you will be looking at $1180 per month payments. Banks are fearful of loaning to each other and that is why rates have gone up, but sadly the homeowner will also suffer. And 121,000 mortgages are to reset next month alone with 3.7 million to reset after that. Huge numbers of people affected by this credit crisis.