50 yr Mortgage. More buying power, or debt trap??

Written By Erik Santamaria-Boror

Is a 50-Year Mortgage Worth It? Pros, Cons & How It Compares to a 30-Year Loan

With housing prices rising and affordability feeling tighter than ever, the idea of a 50-year mortgage has started popping up in headlines. On the surface, it sounds like a solution for buyers who need a lower monthly payment — but does stretching your mortgage over half a century actually make sense?

As a mortgage professional, I don’t personally recommend the 50-year option for most borrowers, but it does come with a few unique benefits. Let’s break down the pros, cons, and long-term cost differences compared to a traditional 30-year mortgage.

What Is a 50-Year Mortgage?

A 50-year mortgage works just like a traditional home loan — but instead of paying it off over 30 years, you stretch it to 50.

That extra 20 years reduces the monthly payment, but it massively increases interest costs over time.

This 50-year mortgage is what our current administration is pushing for in order to supposedly help buyers get into a home.

Pros of a 50-Year Mortgage

Even though I don’t recommend them often, there are a few legitimate advantages:

1. Lower Monthly Payment

This is the biggest selling point. Stretching the loan over 50 years reduces your monthly payment — sometimes by a few hundred dollars.
For borrowers struggling with DTI or trying to qualify in high-cost areas, that lower payment can be the difference between approval and denial.

2. Slightly Higher Purchase Power

Because the monthly payment drops, your debt-to-income ratio improves, which can technically allow you to qualify for a higher loan amount than you could with a 30-year.

3. Short-Term Flexibility

If someone plans to:

  • Sell the home in a few years

  • Refinance when rates drop

  • Use the property as a stepping-stone

…then the lower monthly payment can help temporarily.

Cons of a 50-Year Mortgage

Here’s where the downsides outweigh the benefits for most borrowers.

1. You Build Equity MUCH Slower

In a 50-year mortgage, almost your entire early payment goes to interest.
Your principal barely moves.
That means:

  • Little to no early equity

  • Harder future refinance options

  • Higher loan-to-value for a long time

2. Total Interest Paid Is Shockingly High

You end up paying hundreds of thousands more than on a 30-year loan.

Even with the same interest rate, the 50-year mortgage doubles the long-term cost.

3. You Stay in Debt Longer

A 50-year mortgage means:

  • No payoff until late in life

  • Carrying housing debt into retirement

  • Financial strain during future life stages

4. Higher Risk for Homeowners

If the market dips, you may have:

  • More risk of being upside-down

  • Less equity cushion

  • Less flexibility to move or refinance

5. Rates Are Usually Higher

Most lenders charge a premium because of the extended risk.
This makes the cost difference even worse.

30-Year vs. 50-Year Mortgage — Real Cost Breakdown

Let’s compare a $400,000 loan at 6.5% interest (example only).

30-Year Mortgage

  • Payment: $2,528/mo (principal + interest)

  • Total interest: $510,640

  • Total paid: $910,640

50-Year Mortgage

  • Payment: $2,282/mo (principal + interest)

  • Total interest: $970,981

  • Total paid: $1,370,981

the Difference?

  • Monthly savings: ~$246

  • Extra interest over the life of the loan: ~$460,000 MORE

  • You save a couple hundred per month but pay almost half a million more over the full term.

That’s the main reason most professionals don’t recommend it.

It can make sense for:

  • Borrowers who must reduce their DTI to qualify

  • People planning to refinance soon

  • First-time buyers needing short-term payment relief

  • Investors using cash flow strategies (rare)

But for the average homeowner who wants to build wealth and equity, the 30-year mortgage wins almost every time.

The 50-year mortgage offers lower payments today — but at a very high long-term cost. While it may help some buyers qualify or manage monthly cash flow, it dramatically slows equity growth and increases total interest.

If you're considering this option, always run the numbers and talk with a mortgage professional who can help you structure a smarter plan.

Erik Santamaria-Boror