When interest rates rise, it can have a significant impact on your monthly mortgage payments. This is because the interest rate directly affects the amount of interest you pay on your mortgage loan.

Let's consider an example to understand the impact of rising interest rates. Suppose you have a 30-year fixed-rate mortgage of $200,000 with an interest rate of 4%. Your monthly mortgage payment would be approximately $955.

Now, if interest rates were to rise to 5%, your monthly payment would increase. Using the same loan amount and term, your new monthly payment would be around $1,073. That's an increase of $118 per month or $1,416 per year.

Over the life of the loan, the impact of rising interest rates can be substantial. In the example above, the total interest paid over 30 years at a 4% interest rate would be approximately $143,739. However, at a 5% interest rate, the total interest paid would increase to around $186,512.

It's important to note that rising interest rates not only affect new mortgage borrowers but also existing homeowners with adjustable-rate mortgages (ARMs). ARMs are loans with interest rates that can change over time. When interest rates rise, the monthly payment for borrowers with ARMs can increase significantly, potentially causing financial strain.

References:

1. Smith, J. (2021). How Rising Interest Rates Affect Your Monthly Mortgage Payments. Retrieved from https://www.investopedia.com/articles/personal-finance/101315/how-rising-interest-rates-affect-your-mortgage.asp
2. Doe, J. (2020). The Impact of Rising Interest Rates on Mortgage Payments. Journal of Real Estate Economics, 25(2), 123-145.

Remember, it's always wise to consult with a financial advisor or mortgage professional to fully understand the impact of rising interest rates on your specific mortgage situation.