30-Year vs. 50-Year Mortgage: What’s the Real Cost?

With housing affordability becoming a bigger challenge nationwide, longer mortgage terms are starting to enter the conversation. One idea gaining attention is the 50-year mortgage. On the surface, the appeal is obvious: a lower monthly payment. But how much does it really save—and what does it cost in the long run?

Let’s compare a 30-year mortgage to a 50-year mortgage on a $500,000 home, assuming a 6% fixed rate.

✅ Monthly Payments

The 50-year loan saves about $258 per month. That can feel helpful, especially for first-time or budget-conscious buyers. But that small monthly difference comes at a very big price later.

✅ Total Interest Paid

Because the loan stretches so long, interest keeps building over time:

The house costs more than double its purchase price under a 50-year loan. You save a few hundred dollars a month—but pay over $566,000 more in interest over the life of the loan.

✅ When You Start Building Real Equity

Every mortgage payment is split between principal (paying down the loan) and interest.

• On a 30-year mortgage, you don’t start paying more toward principal than interest until about year 12.

• On a 50-year mortgage, that same milestone doesn’t arrive until around year 26.

That means:

• It takes more than two decades before most of your payment lowers your loan balance.

• Equity builds very slowly, making it harder to refinance, sell, or leverage the home for future financial goals.

✅ So Which Is Better?

While the 50-year mortgage does make the monthly payment smaller, the trade-offs are significant:✔ Higher total interest✔ Slower equity growth✔ Longer financial obligation✔ More risk if values dip or life circumstances change

For most buyers, the traditional 30-year mortgage remains the stronger long-term financial decision. Even a small monthly payment reduction from a 50-year term simply doesn’t outweigh the extra cost.

✅ Thinking About Financing Options?

Every financial situation is different. Some borrowers value lower monthly payments, while others want to save the most long-term. Running the numbers—and understanding the trade-offs—helps homeowners make the best decision with clarity and confidence.

If you’d like a personalized mortgage comparison, a refinance analysis, or guidance on payment strategies that build equity faster, reach out anytime. A little planning goes a long way toward protecting your investment and saving money over time.