[Bend it like Bourgeois]

Originally Posted by RougeUnderoos

All those numbers are confusing for some people. In a lot of cases it is probably just that simple.

Also, people tend to be fairly optimistic about their future. "I'll be making way more money by the time the payments go up, so I'll be just fine".

I think was refinancing more than making more money.

So they figured in 3 years the house would be worth 50k more or something, and they'd simply refinance on better terms.

Credit crunch + bursting bubble means no refinancing. With no refinance option they are screwed.