Overview
- A BadCredit.org poll finds 45% of Americans would consider a 50-year loan, including 54% of Millennials and 46% of Gen Z, compared with 37% of Gen X and 29% of Boomers.
- Analyses show only modest monthly savings but dramatically higher lifetime interest and slower equity build; for a $500,000 loan at 6.1%, interest tops $1.1 million over 50 years versus about $591,000 over 30 years, and Zoocasa’s city estimates show annual payment reductions but far larger total costs.
- Experts expect a rate premium on ultra-long loans that could erode savings; Bankrate’s example shows a $400,000 30-year at 6.25% costing $2,463 a month versus a 50-year at 7% costing $2,407.
- Kiplinger notes current rules would likely render 50-year loans non-qualified without policy changes, limiting federal backing and complicating use by Fannie Mae and Freddie Mac.
- Higher interest over time is not fully offset by taxes due to the $750,000 mortgage interest deduction cap and itemization requirements, and typical tenure of about 12 years reduces any potential tax advantage.