Concerns over the low interest rate

[Ken Teng]

I am not sure if this is the right place to ask this question. If not, please let me know and I will move it to a proper place.

I always have a concern over the current low interest rate. Take a 30yr fixed mortgage for example. Roughly it is about 3-5% now, and a lot of people refi-ed their properties to that rate. However, what may happen if the rates increase a lot in the future, say to 10% (given a 30 year period, this is actually pretty likely)? Now how will the lenders, mainly the large banks, view this vast number of hugely "under-performing" loans? Will those powerful players play tricks to achieve a better return to have us investors burned?

I am just curious, and any comments are welcome.