Mortgage rates are historically low right now in the big picture. Taking out a mortgage right now that will have to be refinanced in 3 years is therefore somewhat risky, as rates are more likely to rise in the next 3 years than they are to fall. I would expect rates to "normalize" to around 8% eventually, but probably not in 3 years... more like 6.5% by then.In the 80's, interest rates were very high.. like 15%-18% I think. If interest rates went up that high, then hopefully it is obvious to you that mortgage payments would increase as well. If a family is currently barely making ends meet, then they should not get a mortgage with a variable interest rate, or a mortgage that they would have to refinance before the loan is paid in full.