Considering a 50-year mortgage? Lower monthly payments may look appealing, but the long-term costs can dramatically outweigh the short-term savings. Before choosing an extended mortgage term, it’s important to understand how a 50-year mortgage affects interest costs, equity growth, and your overall wealth. This guide breaks down the real pros and cons and shows how to evaluate your mortgage choice through our Total Net Worth Approach.

A 50-year mortgage can lower your monthly payment, but it significantly increases your total interest cost over time. For many borrowers, that trade-off can reduce long-term financial flexibility and total net worth.

At Winthrop Wealth, we view mortgage decisions as part of your Total Net Worth Approach, an integrated strategy that seeks to align financial planning, including factors such as debt and cash flow with investment decisions toward your broader financial goals.  For clients who receive both financial planning and investment advisory services under agreement. No strategy assures success or protects against loss. Investing involves risk, including loss of principle.

What Is a 50-Year Mortgage?

A 50-year mortgage extends the repayment term by two decades compared to a traditional 30-year loan. The longer timeline lowers monthly payments but increases total interest paid.

President Trump recently described the 50-year mortgage as a potential “game changer” amid the rising cost of homeownership. However, understanding the numbers shows that the long-term cost can be substantial.

These are hypothetical examples and not representative of any specific situation. Your results will vary:

Example: 30-Year vs. 50-Year Mortgage

• Home price: $600,000
• Down payment (20%): $120,000
• Loan amount: $480,000
• Assumed interest rate: 6.5% for both terms

Result: The 50-year mortgage saves $328.09 per month but adds $531,289.20 in extra interest over the life of the loan.

How Much Equity Would You Build After 25 Years?

If you were to sell the home after 25 years, the remaining balances would look like this:

• 30-year mortgage balance: $155,059.99
• 50-year mortgage balance: $400,742.32

That’s a potential difference of nearly $245,000 in home equity, meaning less financial flexibility and lower proceeds if you move.

What Else Should You Consider?

Interest rate risk:

50-year mortgages may come with higher rates than 30-year loans, increasing total costs.

Tax implications:

The example above does not include potential mortgage interest deductions, which can vary based on your individual tax situation. The analysis also does not consider the tax savings for any mortgage interest that may be tax deductible when itemizing deductions.

Rate assumptions:

The calculations assume that the 50-year and 30-year mortgage rates are the same. If the rate on a 50-year mortgage is higher than 6.50%, the long-term cost difference becomes even more difficult to justify.

Practical affordability considerations:

A borrower may be better served by reducing discretionary expenses by approximately $328.09 per month to maintain the affordability of a traditional 30-year mortgage—or by considering a lower-priced home so that a 30-year loan remains attainable.

Opportunity cost:

Paying significantly more in interest over time could reduce your ability to save or invest toward long-term financial goals.

A shorter mortgage may require more monthly cash flow, but it helps preserve overall wealth by reducing interest expense and building equity faster.

How Does This Fit Into Your Total Financial Plan?

At Winthrop Wealth, we help clients evaluate major decisions like home financing through the lens of their Total Net Worth Approach. That means analyzing:

• Cash flow and liquidity
• Debt and leverage structure
• Investment growth potential
• Tax efficiency
• Long-term financial independence

When viewed as part of a comprehensive plan, we believe the best mortgage choice isn’t just about the lowest monthly payment—it’s about the best alignment with your total financial life.

Bottom line:

A 50-year mortgage may appear attractive at first glance, but it typically leads to much higher overall costs and slower equity growth. Evaluating this choice within your broader wealth strategy can help ensure your financial decisions support, not hinder, your long-term goals.

Learn more about our Total Net Worth Approach.