The pros and cons of a 50-year mortgage

Dear Chuck,

We have been married for seven years and are now ready to buy a home. I know it is a little early, but would you advise us to take advantage of the 50-year mortgage for our first home purchase if it becomes available?

Waiting to Purchase a Home

Dear Waiting to Purchase a Home,

The Trump administration is floating the idea of a 50-year mortgage. It is a very controversial proposal. A quick calculation using current interest rates indicates that the total cost of a $400,000 home would rise to close to $1,000,000 with a 50-year mortgage.

Although that sounds crazy, let’s look at the reasons for the proposal first and then the pros and cons.

Home buying is delayed

The average age of first-time home buyers continues to steadily increase. Realtor.com reports that it has reached 40 years old in 2025. In 2023, Zillow and The Knot conducted an analysis showing a 55% increase in couples choosing house funds for their wedding gift registries since 2018. Guests donate money toward a down payment or home renovations as a gift instead of purchasing a physical item. The money goes to the newlyweds’ bank account.

America’s current housing finance laws would need to change for government backing of 50-year mortgages. And there is some question whether lenders would be willing to offer a reasonable fixed interest rate for such a long term. Though risky, private lenders could create 50-year non-qualified mortgage loans by charging higher interest rates. This could potentially help open up the first-time home buyer market.

Pros

• Lower monthly payments.
• Makes homeowning more accessible, especially for first-time buyers.
• Potential for refinancing in the future.
• More home buyers could lead to economic growth.

Cons

• Higher interest rates and total interest costs.
• Slower equity growth makes it difficult to sell or refinance.
• Potential for higher interest rates.
• May inflate home prices.

Better than renting?

Supporters suggest that the 50-year mortgage is superior to 50 years of renting — especially if homeowners refinance at some point or pay it off early. However, potential consequences cannot be ignored. A 50-year mortgage may open the door to buying a more expensive home than someone can truly afford or investing in multiple homes.

The risk is that most people will not stay in the home for 50 years. As of 2024, the median tenure (the midpoint where half of homeowners have stayed longer and half shorter) stands at 11.8 years, according to multiple real estate data analyses. This is nearly double the 6.5 years recorded in 2005. If the homeowner moves or refinances in under 10 years, they will build very little equity.

Japan has tried something similar

Extremely long-term mortgages (up to 100 years, sometimes called “three-generation loans”) were introduced in the late 1980s during Japan’s asset bubble era. Low interest rates and speculative real estate fever led to lax lending practices. These allowed families to pass the debt across generations, but they contributed to financial risks when the bubble burst in 1990, causing widespread defaults and underwater loans. By the 1990s, such products had largely vanished from the market due to regulatory tightening and economic fallout.

Expert opinions

“My fear is that the 50-year mortgage is going to attract the unsavvy consumer, and someone who doesn’t understand how finances work and how interest works. If you are in a 50-year mortgage, it’s going to take you four times as long to build the equity in the home. It’s going to attract a consumer that’s already struggling. There’s going to be an even larger disparity, once again, between the wealthy and the poor. And I think the disparity is going to get even bigger with this 50-year mortgage” (Micah Smith, credit repair expert).

“It’s not going to solve the primary issue in the housing market” (Daryl Fairweather, Redfin chief economist).

“The slow equity build would make trading up or down very difficult. It would also take almost 40 years to pay off half the balance, meaning most borrowers would not begin building meaningful equity until the final decade” (Lawrence Yun, chief economist for the National Association of Realtors).

“If too many people take out these long-term loans, it could create a bubble where home values are artificially inflated, especially if buyers are stretching their budgets just to get into the market” (Todd Luong, REMAX DFW associate, Frisco, Texas).

Some advice

The Bible says that “the borrower is a servant to the lender” (Provers 22:7 KJV).

Long-term debt is dangerous, so:

• Be patient; be content and grateful as you make steady progress.
• Determine a house savings plan. Write down the goal and celebrate milestones.
• Live frugally for several years by cutting all unnecessary spending. Maybe move in with friends or family or rent a tiny house, RV, or granny flat, while maximizing your savings.
• Consider less costly cities or states to live and work.
• Continue to study the housing market and pray for the Lord to provide the right home.
• When able to buy, resolve to pay extra each month to reduce the life of the loan (while continuing to build an emergency fund for maintenance and repairs).

Helpful tools and articles

“Are 50-Year Mortgages a Viable Option? Breaking Down the Numbers.”
“How a 50-Year Mortgage Would Differ From a 30-Year Mortgage.”
“10 Ways to Get a Lower Mortgage.”
“Helping Adult Children Get a House.”
“Is it Better to Rent or Buy?”
“Owning vs. Renting.”

If credit card debt is a financial burden or is hindering you from saving for a down payment, consider reaching out to Christian Credit Counselors. They are a trusted partner of Crown and can help you consolidate debt and get on the road to financial freedom.