10/30/2026
Tens of thousands of homeowners have adjustable rate mortgages from years ago that are now resetting, increasing their monthly payments by hundreds or even thousands of dollars.
Andrew Hecker never believed taking out an adjustable-rate mortgage in 2019 would be much of a risk.
His lender offered him an initial rate about 1.25 percentage points below the 4% rate for a traditional 30-year mortgage at the time. He figured he would move from his home in the Minneapolis area before his rate readjusted in seven years.
Now, he is staring at a mortgage rate jumping from 2.75% to as much as 7.75% in January. That will increase his minimum payments every month from $6,800 to $9,300.
“That basically means every single penny I’ve been making in extra payments is going to go toward interest,” he said. “You look at it and right now in 2026, it’s kind of stupid. I should have taken the fixed mortgage.”
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