If for instance, you cannot make the payments for the take over mortgage, the lender will foreclose. And if the property sells for less that the balance of the take over mortgage, the lender reserves the right to sue you for the difference. A take over mortgage is not a free ride either. In order to get a take over mortgage, you still need to undergo a pre-qualifying process. While reverse mortgages have their advantages, they also have a downside. As you know already, reverse mortgages do not require monthly paybacks. This means that with reverse mortgages, you are actually taking out equity from your home and turning it into cash. This does not bode well for your debt or your home equity for that matter. Payment Calculations for Second Mortgage Loans Before taking on second mortgage loan, be sure that you understand a couple of things first. Know how much your monthly payments will be for that second mortgage loan. Moreover, it is also helpful if you also have an idea as to where those second mortgage loan payments will cover. Fixed Rate Home Mortgage Rates Even though home mortgage rates are low, fixed rate home mortgage rates roughly remain the same. This is due to the fact that fixed rate mortgage rates are based on bond rates and not on fed rates. For most people, refinancing a home only makes sense if the new home mortgage rate is 2% lower than your current rate. The monthly payments for a fixed rate home mortgage may either for a period of 15 years or 30 years. Fixed rate home mortgages are considered stable. With fixed rate home mortgages, your interest rates are guaranteed and your monthly payments are predetermined. A 30-year fixed rate home mortgage has its own advantages and disadvantages. Paying off an amortization mortgage is usually done in equal monthly installments. One example of an amortization mortgage is one that involves your car loan or your home loan. Your credit account however cannot be considered an amortization mortgage since it does not involve a fixed date for payoff.