We tend to undervalue the future. Nowhere is this tendency stronger than in finance, and nowhere in finance is it stronger than in the mortgage market. Borrowers focus on the monthly payment, because that is today's problem, to the neglect of how much they owe and the future obligations they may face, because those are tomorrow's problems. I have termed this "payment myopia."
The system encourages payment myopia. Like all salespeople, loan officers and mortgage brokers sell an alluring present, not a challenging future. Lenders have created instruments that support their efforts by offering reduced payments in the early years at the cost of higher payments and larger balances in later years.