As adjustable-rate mortgages are starting to squeeze wallets, many people are refinancing with new lower adjustable-rate mortgages.  However, this is taking a few steps back to better jump the gorge.  The interest and rates will catch up soon or later.  So this is a stop-gap solution.

We are starting to hear stories about homeowners buying to find a year later lenders encouraging them to refinance into larger loans to pay off credit-card debts, for instance.  With appraisal values of homes going up until last year, it was a no-brainer.  That is until now.  These 2003 adjustable-rate loans are ballooning and refinancing into a fixed-rate loan is no easy task with home values dropping in some parts of the country.

What this could mean is that we will see over the next few years instead of the next few months more people having problems paying their mortgages.  In other words, the flow of people that wanted to cash on the last good rates of a few months ago might help cushion the heartaches over a few years.