The Hidden Cost of a 50-Year Mortgage: Nearly $1M Extra Interest in One City

Core Insights - President Trump's proposal for 50-year mortgages aims to reduce monthly payments but results in significantly higher total interest costs and slower home equity accumulation [1][2] High-Cost, Low-Supply Market: San Francisco-Oakland-Fremont, California - In the San Francisco market, the 50-year mortgage offers substantial monthly payment reductions, but the total interest paid could increase by $904,798, creating a long-term financial burden [4][5] - The stagnant supply in the market may lead to increased competition and higher home prices, potentially offsetting the monthly savings of $607 [5] High-Growth, Mid-Cost Market: Raleigh-Cary, North Carolina - The 50-year mortgage could provide essential monthly savings for income-constrained buyers in the Research Triangle area, but it may also lead to slower equity build-up and potential home price inflation [7] - Key financial metrics include a median listing price of $954,500, with a 30-year monthly payment of $5,289 and a 50-year monthly payment of $4,682, resulting in monthly savings of $607 [7] Lower-Cost, Stable Market: Akron, Ohio - In lower-cost areas, the monthly savings from a 50-year mortgage could be crucial for buyers, but the additional interest costs are significant and should be avoided if possible [10] - Financial details show a median listing price of $239,570, with a 30-year monthly payment of $1,328 and a 50-year monthly payment of $1,175, leading to monthly savings of $153 [11]