I know of few loans that are based on compound interest today. A compound interest loan would be paid on the original principal and on the accumulated past interest, compounded monthly, if amortized over 30 years with a monthly rate conversion of .92, then a $100,00.00 dollar loan would end up costing the borrower $2,289,229.66, with the interest amount paid being $2,189,229.66 Obviously, that is not what is occurring, otherwise there would be absolutely no home sales under such lending conditions. There are no mortgages that I am aware of that are based on a compound interest rate.
Most mortgages today are actually simple interest loans. Using your example of $100,000.00 at 5% would not be $105,000.00, but with a simple interest loan, amortized over 30 years, it would end up being $193,255.78. In other words you would pay $93,255.78 on $100,000.00 over 30 years. That figure does not include PMI or Taxes however.
"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun
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