this post was submitted on 17 Nov 2025
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United States | News & Politics
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A 50 year mortgage is basically renting your house from the bank on a long-term lease. The only advantage is that your rent will never go up.
Look at this 30 year amortization schedule. This payment is $3000/mo on a $500k loan (no money down to lake the math easier), 6% rate. You pay through 10% of the loan in year 7, and 50% in year 21. Through the life of the loan you pay a little more than double what the loan was originally worth.
Now look at the 50 year amortization for the same loan. You save less than 400 a month, but hit 10% paid down in year 18 and 50% in year 40(!!!). Over the life of the loan you are paying triple what the loan was originally worth!
It only makes sense during periods of low interest rates. But what bank would loan out money at a low rate for that long?