Edited by Peggy BennettWhat Is a 50-Year Mortgage?
Quick Answer
A 50-year mortgage could lower monthly payments, but would come with major trade-offs. Learn how a 50-year mortgage might work, if it’s available and how it might compare to other types of mortgage loans.
A 50-year mortgage is a proposed home loan that would be paid off over 50 years instead of the more common 30-year term. Although the idea has been discussed by federal policymakers as a way to make housing more affordable, 50-year mortgage loans do not currently exist.
Spreading mortgage payments over five decades could lower monthly payments compared with a traditional 30-year loan, but would also come with major trade-offs. Borrowers would pay significantly more in total interest, build equity more slowly and might have to pay private mortgage insurance (PMI) for much longer. Here's a closer look at how 50-year mortgages might work if they're even adopted and the potential pros and cons.
Are There 50-Year Mortgages?
No, 50-year mortgages are not currently available in the U.S. Most U.S. home loans are qualified mortgages, meaning they meet federal standards designed to prevent lenders from making loans borrowers can't repay. To reduce risk for both lenders and borrowers, qualified mortgage terms are limited to 30 years. In addition, most mortgages are sold to government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which limit eligible loan terms to 30 years.
Currently, the closest thing to a 50-year mortgage is a 40-year mortgage. Nonqualified 40-year mortgages for home purchases exist, but few lenders offer them. Some borrowers experiencing financial hardship may qualify to extend their mortgage terms to 40 years as part of a loan modification program, but this differs from loans for new home purchases.
Learn more: What Is a Mortgage?
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When Will 50-Year Mortgages Become Available?
It's unknown when, or if, 50-year mortgages will become available. Policymakers, regulators and lenders are likely to approach the concept with caution, because longer loans mean greater financial risk for both lenders and borrowers. As a result, 50-year mortgages would likely have higher interest rates, stricter lending requirements and limited availability.
Learn more: How Does Mortgage Interest Work?
How Would a 50-Year Mortgage Work?
A 50-year mortgage would extend repayment over five decades, lowering monthly payments but increasing lifetime costs. Assuming a fixed-rate loan, the balance would be amortized over 50 years instead of 30.
Amortization means your monthly loan payments go partly to the loan's principal and partly to interest. At the beginning of the loan term, most of each payment goes toward interest. Over time, the balance shifts until most of your payments go toward principal and ultimately, the loan is paid off. With a 50-year term, it would take much longer to pay down principal and build home equity.
Since 50-year loans would likely be nonqualified, they might have other features that would make them risky for borrowers.
- Interest-only payments: A 50-year mortgage might start out with interest-only payments for a certain period, slowing your equity-building even further.
- Balloon payments: Mortgages with balloon payments require a large lump-sum payment in the middle or at the end of the loan term, which can be hard to manage.
- Negative amortization: Some nonqualified mortgages set payments that don't cover the interest you accrue each month. As a result, your loan balance gets bigger, even though you're making payments. Ultimately, you could end up owing more than the home is worth.
- Higher closing costs: Qualified mortgages have limits on closing costs, but nonqualified mortgages do not.
Learn more: What Type of Mortgage Loan Is Best?
Longer-Term vs. Shorter-Term Mortgage Interest Rates
Longer loan terms generally mean higher interest rates and higher total borrowing costs. For example, average mortgage interest rates for 30-year fixed-rate loans are higher than rates for 15-year fixed-rate loans. Although it's impossible to predict exact rates for 50-year mortgages, lenders would likely charge higher rates than they do for 30-year loans.
The table below compares monthly payments and total interest for a $350,000 fixed-rate mortgage with 15- and 30-year terms. The longer loan has a lower monthly payment, but a higher mortgage interest rate, which results in paying more than twice the amount of total interest over the life of the loan. Ultimately, the longer loan costs you $224,949 more in total payments.
| Loan Type | Interest Rate | Monthly Payment | Total Interest Paid | Total Paid |
|---|---|---|---|---|
| 15-year fixed | 5.71% | $2,627 | $67,488 | $417,448 |
| 30-year fixed | 6.58% | $2,093 | $292,437 | $642,437 |
Source: Curinos LLC, January 2026; assumes a 720 FICO® ScoreΘ, 20% down payment and $350,000 mortgage
Pros and Cons of 50-Year Mortgages
If 50-year mortgages ever become available, here are some potential pros and cons to consider.
Pros
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Lower monthly payments: Spreading payments over 50 years could make it easier to afford a home.
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More flexible payment options: Assuming 50-year mortgages are nonqualified, they could offer options such as interest-only payments or balloon payments, which could be appealing if you don't plan to stay in the home long.
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Rental alternative: For buyers who are priced out of traditional mortgage loans, a 50-year mortgage could be a better alternative to renting.
Cons
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More expensive: Higher interest rates plus a longer loan term mean 50-year mortgages cost much more over the life of the loan. Closing costs are likely to be higher too.
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Slower equity growth: Home equity can be a major asset that you can borrow against or recoup as profit if you sell your home. With a 50-year mortgage, however, it could take decades to build significant equity.
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PMI may last longer: Slower equity buildup could make it more difficult to get rid of private mortgage insurance, adding to your housing costs.
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Risk of negative equity: If market conditions, poor maintenance or other factors cause your home value to drop, you could end up underwater on the loan.
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Stricter lending requirements: Because longer loans are riskier, 50-year mortgages will likely have more stringent criteria, such as higher credit scores and lower debt-to-income ratios (DTIs).
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Payments could hinder retirement: Making mortgage payments into your 70s or 80s could strain your finances. You might struggle to make payments on a fixed income or be forced to delay retirement. If you can't make the payments and lose your home, it will be harder to recover than if you were younger.
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You may never own your home: The average age of first-time homebuyers is 40, according to the National Association of Realtors, while the average American's life expectancy is 78.4 years, Centers for Disease Control and Prevention data shows. The odds are slim that the average homebuyer will pay off a 50-year mortgage in their lifetime. Unless your heirs are ready to take over the mortgage when you die, they'll have to sell the home or face foreclosure.
Who Should Consider Getting a 50-Year Mortgage if They Become Available?
A 50-year mortgage might appeal to buyers whose biggest priority is lower monthly payments.
This could include:
- Buyers with strong potential for income growth
- Buyers who plan to sell or refinance within a short time
- Buyers who care more about cash flow than building equity
Even in these situations, you'd need a clear long-term plan to reduce the risks of a 50-year mortgage.
Learn more: How to Get a Loan to Flip a House
Who Should Avoid Getting a 50-Year Mortgage?
Homebuyers who would be better off avoiding a 50-year loan include:
- Buyers who are nearing retirement
- Buyers who plan to stay in a home long term
- Buyers who want to minimize mortgage interest costs or avoid extended PMI payments
- Buyers who want to build equity fast
For most people, the risks of a 50-year mortgage outweigh the monthly payment savings.
Learn more: How to Build Home Equity
Other Mortgage Types to Consider
If home affordability is your biggest concern, consider these available mortgage options and strategies that could help reduce your monthly payments.
- 30-year fixed-rate mortgage: Balances manageable monthly payments with lower long-term costs.
- 15-year fixed-rate mortgage: Requires higher payments, but saves significantly on overall interest.
- Adjustable-rate mortgage (ARM): Offers lower initial rates and payments, which can rise or fall later.
- Larger down payment: Reduces your loan size and interest costs, and can eliminate the need for PMI.
- Less expensive home: Setting your sights on a cheaper home may be your most affordable option.
Learn more: How Much House Can I Afford Calculator
Choose Your Mortgage Wisely
Currently, 50-year mortgages are only a proposal. If they ever become reality, 50-year mortgages could mean lower monthly payments, but for most borrowers, the savings would come at a steep long-term cost. There are other ways to save on your mortgage, such as making a larger down payment, choosing an ARM or buying a more affordable home.
Whatever type of mortgage you're seeking, a good credit score may help you land a lower interest rate. You can check your credit report and FICO® Score for free with Experian to see where you stand. Reducing debt balances and paying bills on time can help improve your credit and could help you qualify for money-saving mortgage terms.
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About the author
Karen Axelton
Karen Axelton specializes in writing about business and entrepreneurship. She has created content for companies including American Express, Bank of America, MetLife, Amazon, Cox Media, Intel, Intuit, Microsoft and Xerox.
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