US Edition50-Year Mortgages Won’t Address the Issues Facing First-Time Buyers
Fifty-year mortgages lower monthly payments by under $300 but double total interest and delay home equity buildup by nearly 40 years, experts say.
- President Donald Trump proposed 50-year mortgages to ease homebuying, but Finder.com and Stacker reported longer loans won't solve limited housing supply or affordability.
- Using a $400,000 example, front-loaded amortization means a $2,105.62 monthly payment, with about $2,000 of the first payment going toward interest, and stretching to 50 years only modestly lowers payments.
- Finder.com's calculations show a 50-year mortgage on a $400,000 home doubles total interest to $863,371.51 versus $463,352.76 for 30 years and takes over 38 years to reach 20% home equity.
- First-Time buyers face being locked into mortgages and unable to refinance for nearly 40 years unless they build 20% in equity or make a large down payment, despite programs like Michigan's offering up to $25,000 assistance, though funds have been committed.
- Historically, Japan's 100-year mortgage experiment mainly helped affluent homeowners, so analysts advise first-time buyers to focus on down-payment savings and boosting housing supply.
38 Articles
38 Articles
OP-ED: The 50-Year Mortgage Is a Trap, not a Path to Black Wealth
BLACKPRESSUSA NEWSWIRE - For Black families already fighting a manufactured wealth gap, this isn’t a path to ownership. It is a debt trap that drains equity, delays retirement, and repeats the same housing discrimination that locked us out generations ago.
Omaha World-Herald
50-year mortgages won’t address the issues facing first-time buyers
Finder.com reports that 50-year mortgages may lower monthly payments but lead to double interest and slow equity growth, making them a poor choice.
Will a Fifty Year Mortgage Help Buyers?
Questions about why a person would take out a 50-year mortgage continue to draw attention. The reason is simple. Housing feels out of reach for many buyers, and people are searching for a fix. I am Taylor Sohns, CEO of LifeGoal Wealth Advisors, a CIMA and CFP. I spend my days looking at the trade-offs behind ideas like this. The numbers tell a clear story. Why a 50-Year Mortgage Is on the Table The average buyer in the United States is getting o…
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