Is a 50-Year Mortgage Really Worth It? Here’s What Experts Are Saying

The average age of first-time homeowners is at an all-time high of 40 years, according to a recent survey from the National Association of REALTORS (NAR). Around the same time these numbers were reported, President Donald Trump proposed the idea of a 50-year mortgage plan to get younger buyers into the real estate market. The U.S. Director of Federal Housing Bill Pulte showed his support, sharing on X, “A 50 Year Mortgage is simply a potential weapon in a WIDE arsenal of solutions that we are developing right now.” 

To unpack this concept for potential buyers out West, I reached out to two California real estate agents: Lindsey Harn, a residential real estate agent and owner of Lindsey Harn Group in San Luis Obispo, California, and Gerson Seise of Gerson Seise Realty in Laguna Beach, California. Here’s what you should know about this  type of loan: 

It’ll lead to relatively more affordable mortgage payments. 

The main draw to the 50-year mortgage is that your monthly payments are much smaller than they would be on the more common 30-year mortgage. That said, “The total cost of the loan ends up being significantly higher, because stretching that loan means you’re paying interest for an extra 20 years,” Seise warns. “Lower monthly payment? Yes. Better long-term wealth-building tool? Usually not.”

It’s a significantly longer road to equity.

Of course, tacking on an additional 20 years to the 30-year mortgage will inevitably extend the length of time you make payments on your home. “Even on a 30-year fixed mortgage, the majority of your payments in the beginning are all going toward interest,” Harn explains. “A 50-year mortgage would slow down someone’s ability to build equity, so the buyers are probably going to stay in their houses longer and they would probably not get out of that debt for a very long time.”

It could have ramifications for younger generations in your family.

Because of this slower payment process, Harn shares one example: Imagine two parents are 50 years old and get a 50-year mortgage, and something happens to them at 70 or 80 years old. That means their children will inherit a property with about 25 years left to pay off.   

It’s likely not the best idea for buyers—but there are exceptions. 

“Generally, I don’t think it’s a great financial decision, but like anything, there are cases where it could make sense,” Harn says. “If it’s a single income family that wants to get their foot in the door with low payments (less than or equal to what they’d be paying in rent), and in five years the other spouse will go back to work when the kids are older. In that case, I would refinance later on.”  

Harn says she’s also looked into seven- or 10-year adjustable-rate mortgages (ARMs) with her clients, which would give them a fixed interest rate for up to 10 years in the 5.5 to 5.75% range. After the time’s up, they’d go on to refinance.  

It might result in higher costs from your bank. 

“My guess is it would come at a higher cost of borrowing the money, because then the bank’s on the hook to accept that interest rate for 50 years,” Harn adds. “Rates fluctuate, but that’s a long commitment for the banks, so I imagine that they would also charge a higher cost to the buyer.”

Both Harn and Seise agree that there’s no one-size-fits-all approach to home ownership, but that it’s best to know the consequences of taking on a 50-year mortgage. 

“A 50-year mortgage gives you a smaller monthly bill, but you’re trading that for decades of extra interest and slower equity growth,” Seise says. “It’s not automatically good or bad—it just comes with strings attached.”