foreclosure Bo and Ana Apostolache loved their three-bedroom home on a cul-de-sac near Irvine, Calif. when they bought it six years ago. Best of all, they could easily cover the $1,400 [tag]monthly payments[/tag] on their $175,000 [tag]mortgage[/tag]. Over the next few years, as [tag]interest rates[/tag] dropped and their home price tripled in value, the couple refinanced several times and tapped $200,000 worth of equity to pay for home improvements – and a Barbados vacation. By 2005, although they had doubled their loan balance, their payments had increased by only $400 a month, thanks to an [tag]interest-only adjustable-rate mortgage[/tag] with an initial rate of just 3.75 percent.