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#TRUMP #A 50-year mortgage is ‘only going to hurt the consumer.’ Here are some ideas that could actually help.
Experts call the idea of a 50-year mortgage
Experts call the idea of a 50-year mortgage "very problematic" and say it is "only going to hurt the consumer in the long run."
The general consensus among financial and housing experts is that while a 50-year term offers a small reduction in the monthly payment, the long-term costs and financial drawbacks far outweigh this benefit.
$BTC $BNB $SOL #USGovShutdownEnd? ❌ Why Experts Oppose the 50-Year Mortgage
The key valid information and arguments against a 50-year mortgage include:
Massive Increase in Total Interest Paid: Extending the loan term from 30 to 50 years would roughly double the total dollar amount of interest the homeowner pays over the life of the loan.
Slower Equity Growth: Homeowners would build equity significantly slower because a much larger portion of early payments goes toward interest rather than principal (amortization). For a median-priced home, a 50-year loan could result in tens of thousands of dollars less equity built over the first five years compared to a 30-year loan.
Higher Potential Interest Rate: Longer-term debt typically carries a higher interest rate than shorter-term debt, which would negate some or all of the monthly payment savings.
Retirement Risk: The term can easily extend past the borrower's retirement and even their life expectancy, forcing them to make large housing payments during non-working years.