Faced with complicated mortgage choices with varying teaser rates vs plain vanilla 30 year fixed rate plans, the inexperienced borrower will most likely end up with mortgages that they cannot repay. Majority of home owners are Homer Simpsons to put it politely, and easily swayed with a donut to pick the worst mortgage packages that fit their profiles.
http://www.nytimes.com/2009/07/05/business/economy/05view.html
Further discussion on how these mortgage instruments may be leveling the playing field between the poor and rich who choose to leverage properly.
http://www.businessinsider.com/the-dangerous-mortgage-nostalgia-of-behavioral-econ-2009-7
