When the Interest rate increases as per table below say in 2 years of loan, the full amount of loan will remain unpaid, in spite of paying all instalments all the years.
| Compounded Quarterly | Repaid Monthly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.48% | 7.05% | 7.97% |
| 5.50% | 6.86% | 7.41% | 8.31% |
| 6.00% | 7.24% | 7.78% | 8.66% |
| 6.50% | 7.64% | 8.16% | 9.01% |
| 7.00% | 8.04% | 8.54% | 9.37% |
| 7.50% | 8.45% | 8.93% | 9.74% |
| 8.00% | 8.87% | 9.33% | 10.12% |
| 8.50% | 9.30% | 9.74% | 10.50% |
| 9.00% | 9.74% | 10.15% | 11.10% |
| 9.50% | 10.18% | 10.57% | 11.18% |
| 10.00% | 10.63% | 11.00% | 11.69% |
| 10.50% | 11.08% | 11.44% | 12.10% |
| 11.00% | 11.54% | 11.88% | 12.51% |