50 Year Mortgage

Written By Sean Mertens

Housing Affordability Needs Solving

Buying a home is not as easy as it has been in the past. Home prices have skyrocketed and far outpace earnings growth. This growing concern is making its way into politics. Mamdani, the newly elected Mayor of New York City, won largely on a the housing affordability issue. More recently, Trump has floated the idea of a 50 year mortgage. Even though it’s not available yet, lets talk about a 50 year mortgage.

Pros of a 50-Year Mortgage

  • Lower Monthly Payments: Spreading the loan over 50 years makes homeownership more affordable, especially for first-time buyers or those in high-cost markets.

  • Improved Cash Flow: Lower payments can free up money for savings, investments, or other expenses.

  • Easier Qualification: The lower payment may help borrowers meet debt-to-income requirements.

Cons of a 50-Year Mortgage

  • Much Higher Total Interest: You’ll pay almost double the interest compared to a 30-year mortgage.

  • Slower Equity Build-Up: Most of your early payments go toward interest, meaning it takes longer to gain ownership of your home.

  • Possible Negative Equity Risk: If home values drop, you could owe more than your home is worth for many years.

Comparing the Numbers: 30-Year vs. 50-Year Fixed Mortgage

Let’s look at a $500,000 loan at a 6% fixed interest rate:

Monthly savings: About $358 less per month

Extra interest over time: About $525,000 more

Bottom Line

A 50-year mortgage can make homeownership accessible in expensive areas, but it’s a trade-off between lower payments now and far higher costs later.
For most borrowers, a 30-year fixed remains the better balance between affordability and long-term value.

If affordability is tight, consider a smaller loan amount, rate buydown, or shared-equity program before stretching to 50 years.

Sean Mertens
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