The Trap of Adjustable-Rate Mortgages

Adjustable-rate mortgages looked harmless. Low payments. Easy approval.

But here’s the trap. Those rates were temporary. When they reset, payments jumped

— sometimes overnight. Banks knew borrowers couldn’t afford the real rate. They didn’t care.

The loans were sold before the damage showed. When prices stopped rising,

the trap snapped shut. Legal. Predictable. And devastating.