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Caroline Said:

Home equity loans what happens when my mom dies?

We Answered:

When you mother passes and the house becomes yours, you can get a new equity line to pay off the old one or get a new mortgage that will pay off the equity line and any old mortgage. The equity line may or not have been a good idea, but it's not the worst thing ever. Call your mortgage broker and have a conversation about it to get more info.

Kenneth Said:

Reverse Mortgage or second home loan?

We Answered:

How old are you? How much equity do you have in your home?

Those would be facts that you would need to make your decision, we can't answer it based on what you want to spend the money on.

Javier Said:

reverse compounding on mortgage loans?

We Answered:

What do you mean by "reverse compound"? In the days of sub-prime mortgages there were products such as "option ARMs". These were often negative amortizing loans. For example, you may owe 5% interest on your loan but have a "teaser rate" where you only make annual payments equal to 2% of your loan balance for a certain period of time. In that instance, since your payments are lower than your actual loan costs, your loan balance actually increased during the teaser period.

These days option ARMs are basically non-existent. We're basically back to a plain vanilla lending environment where 30 year fixed rate loans are most prevalent. Almost all loans have no compounding effect since you are making both principal and interest payments every month. I'm not sure what formula you're looking for, but any simple mortgage calculator should give you the answers you're looking for. I hope this helps.