The total cost of the mortgage would be so much more for a 50 year loan - and the monthly payments would not be that much less. I don't see the benefit.

(below based on 7% interest and 100K loan)

I would not be a fan of a 50 year amortization. Too long. Maybe 35 at most. People need the perception of a final payoff before retirement. 

Remember back when 3-year car loans were the norm, and they suggested 5-year loans because cars had become so expensive?  People lost their ever-lovin' minds!  Well, 5-year car loans are fairly common these days.

I don't know that we're quite to that point where we're ready to welcome 50-year mortgages into the American zeitgeist, but I wouldn't be surprised if we see a them begin to stretch closer (now that it's been suggested by Señor Trump)... maybe 35-year... 40-year...  moving ever closer.  I'm sure there will be some takers in the near future who will be willing to "sell their souls" for a slight relief in their monthly payment.

Changing from a 30 year mortgage to a 50 year mortgage would reduce the monthly payment amount but increase the total interest paid by a substantial amount. Increase in equity due to principal repayment would be substantially slower.

I think it's a pretty good idea Fred Griffin Florida Real Estate . More people would qualify for sure. I would guess that lenders would be happy as well. I can just imagine the amortization schedule, you break even on the interest and principal in year 42. 🤪

Wow 50 years! But that would really lower monthly payments and could be the difference between people getting into a home or not.  Equity would grow much slower, however. You would have to hope that normal real estate trends of price growth of 3-5% per year continue.

Optiona are always nice to have and that is just one option available but a lot can happen in 50 years.

For the lending industry, its a long term return on safe money. For the borrower, it works & can end sooner by choice i.e. doubling payments or ? Great question Fred of Fred Griffin Florida Real Estate 

Maybe 40, but then that's Trump.  He says more than he wants and then negotiates to what he really wanted in the first place.  I wouldn't ever do it.  Hell I don't want another 30 year mortgage.  

Yeah, I'd like to hear from the lenders if THEY would do it.

For a buyer, esp first time: how long you gonna live there with no/little equity? 

It may be a product for some, but it is a risk for anyone not RWA to live there a long time.

Fred Griffin Florida Real Estate it is not a fix, it is an option.

The article is behind the paywall so can't access it but I read about this the other day. IF it is amortized over 50 years and due in 30, it might be feasible. In my mortgage broker days there were some lenders who amortized over 40 years but due in 30. The reasoning was that it made it easier for buyers and that they would refinance to a conventional down the road or sell once they built equity. 

Do I agree with it? Based on what little information I have read, at this point I say no. Not everyone is meant to be a homeowner and I remember all too well during the bubble when LOs were selling option arms and putting people in loans they could not afford so they could buy homes they did not really want and could not afford.

Unless you plan to pay it off MUCH faster, this just does not make sense.  Someone who has to buy a home at 45 or 50 may likely not live long enough to pay off the home.  Life insurance amounts would need to go way up to to cover what's left on the mortgage.

The only thing that can be done is to pay them off much sooner.  People don't understand that these days.

This is among the many broken, corrupt areas that need reform. I will leave it at that. 

Fred Griffin Florida Real Estate - I read the recent article but I'm not a believer in government loans and I'm not in favor of a 50 year loan either. For me, a 50 year loan would feel like a jail sentence. If I can't pay for what I need with cash, or have a plan as to how to pay off a needed loan in a short amount of time, I won't take the risk. Even with a 30 year loan, payments increase when you're married to the loan and each year the loan gets higher because of property taxes and home insurance. There needs to be more education about finances and bank loans with real live examples that kids learn in school. Unfortunately, many parents can't teach their kids about finances and loans. 

If one bought a home after July 31, 1979 with an interest rate of 10 1/2% percent interest, and refinanced with the loan when interest rates came down to 5 3/4%, they were in a better position to sell because the value of the house went up and there was less risk to sell and make a profit. People who bought when interest rates started going up after August 1, 1979 through the 1980's, the interest rates 18% and highter+ insurance + property taxes + the expense of kids and emergencies, had a tougher time to live within their means. 

No. I would stay awy from 50 year loans.

I financed my house for 30 years, but am paying it off in less than 23.  I have never financed a car more than 48 months or paid it off in less than 36.  I hate paying interest.  

Hard to weigh in with confidence until I know what the interest rate would be on a 50 year amortization (vs a 30 year).

In the early 2000's, the long awaited 40 year fixed mortgage emerged. Our initial excitement was immediately squashed when we realized the interest rate was higher (and that the monthly payment was essentially the same as a 30 year fixed...but it saddled the Borrower with an additional 10 years of interest).

That said, if the rate was identical (say on a $500K loan at 6%), the payment difference would likely create more Borrowers!

** $2997.75 (30 year - P/I)

** $2632.02 (50 year - P/I)

~12% payment improvement

There has been a 40-year mortgage for many years.  It didn't really take off since the difference in payment vs. 30 years is nothing to write home about. 

How about having mortgages transferable to the next buyer?  Imagine how many people would sell EASILY with a 2% mortgage rate?  Now you're talking a boom in real estate!

That's a lot of interest.

It may make it easier to qulify, perhaps, but I would urge most people to get off of one ASAP.  Then again, most people are crappy savers (learned that in my 14 years as a lender back in the 80s and 90s).

Short take: A 50-year mortgage is simply another tool. It lowers the monthly payment for many buyers, while 15- and 30-year loans remain available. Yes, it costs more over time—but you can still make extra principal payments, refinance later, or use it as a bridge if you plan to sell in a few years and just want the smallest monthly outlay.

If you expect to keep the home long-term (decades), consider:

• Total interest: much higher lifetime cost vs. shorter terms.

• Equity build: slower principal pay-down early on.

• Refi risk: future rates/terms aren’t guaranteed.

• Discipline: plan scheduled extra payments to accelerate payoff.

• Exit plan: job/location changes, family needs, and maintenance over 50 years.

It would just be another option...  

I'm not sure how I feel about it. I think we all know the downside. I'm waiting to hear the upside.

I could see this as a niche product, but not a good idea for the masses. We don't know the details- but as a concept- obviously this is a product where you aren't building equity quickly, and could easily be a problem to the banks and consumers if used incorrectly.

NO ONE KNOWS.  Everyone is debating a speculative product with absolutely no knowledge of any details beyond vague "we're thinking about it" tweets on X.

Is it going to be a blanket offering (I can cash out on my house tomorrow with a 50 year term?) - if so, it's a bad idea - it'll drive up prices, promote fiscal recklessness, and continue to make Americans slaves to debt.

Is it going to be a specific offering targeting affordability - an option only for first time buyers, with income limits, helping those who otherwise would have 0 access to home ownership?  Then it would be a great idea.  

But without details, no one knows and we're all just creating but ado about nothing.

I wouldn't mind a 50 year mortgage if the fees wasn;t incredibly high.  It can be paid off at any rate and the lower payment is a protection during hard times.