50 Year Mortgage Rates

Are 50-Year Mortgages Really the Answer? Lower Payments, Higher Debt, and a Lot of Unknowns

There’s been a lot of chatter lately about 50-year mortgages, and on the surface, it sounds simple. We already have 15- and 30-year options, so why not just stretch it a little further to help with affordability?

Yes, extending the term lowers the monthly payment, and for some buyers that feels like a lifeline. But it comes with a big catch: you pay dramatically more in interest over the life of the loan. That trade-off is exactly why people are curious but not fully convinced. There are just too many unknowns.

The biggest question I hear is, “How long would it take to build real equity?” And that’s where the numbers start to feel a little concerning.

Realtor.com ran the math on a $400,000 home with 10% down at today’s 6.25% 30-year rate. A 50-year mortgage could lower the monthly payment by about $250. Helpful, yes, but not life-changing.

The long-term cost is the real issue. Over 50 years, the interest paid jumps to about $816,396. Compare that to $438,156 on a traditional 30-year loan. That’s roughly $378,240 more in interest, or about 86% more overall.

Equity also grows painfully slow with a 50-year term. After 10 years, the 30-year borrower would have more than $42,000 additional equity, simply because they’re paying down the principal faster.

And even if these longer mortgages drum up more short-term demand, experts warn they could create the same issue we see with other “affordability fixes.” More demand often pushes home prices up, not down.

So, while the idea of a smaller monthly payment is appealing, a 50-year mortgage may not be the affordability answer many hope for. As always, every situation is unique, and it’s important to look at both the short-term comfort and the long-term cost before making a decision.

If you want to talk through what makes the most sense for your goals, I’m always here to help. Let's connect!