Re-refinancing, and Putting Off Mortgage Pain

The New York Times reports:

It is the latest twist in the gravity-defying world of the high housing prices and exotic low-rate mortgages: As monthly payments on adjustable-rate mortgages are starting to balloon, many Americans have found a way to put off the day of reckoning.

They are refinancing with new adjustable-rate mortgages that keep monthly payments low — for now, that is, though their payments will likely rise even higher in the future.

You'll want to read this whole article.The leverage game could end in disaster if many of these leveraged homeowners don't get appreciation.