5 Ways a 50-Year Mortgage Could Destroy (or Grow) Your Wealth

Core Viewpoint - President Donald Trump's proposal for a 50-year mortgage aims to make home ownership more affordable, but it raises questions about the long-term financial implications for buyers [1][2]. Group 1: Financial Implications of a 50-Year Mortgage - A 50-year mortgage could significantly lower monthly payments, making it easier for home buyers to enter the market, especially as home values remain high [4][5]. - For a home priced at $400,000 with a 20% down payment, the monthly payment on a 30-year mortgage would be $2,339, while a 50-year mortgage would reduce it to $2,112, saving approximately $227 per month [7]. - However, the total payments over the life of a 50-year mortgage would amount to $1,267,200, which is $425,160 more than a 30-year mortgage totaling $842,040 [6]. Group 2: Interest Costs - A 50-year mortgage results in total interest payments that could reach approximately 225% of the total home price, which is more than double the interest paid on a 30-year mortgage [8].