11/11/2025
I read this morning that the average price of a home in the USA is $415,000. The average age for purchasing one’s first home is around 40. In an attempt to make housing affordable Again our President is thinking about a 50 year mortgage… it helps the payment, but it’s not a silver bullet and it comes with real downsides.
What a 50-year would do (vs. a 30-year)
• It lowers the monthly payment but greatly raises total interest and slows equity build.
• Example: $400,000 loan at 6.5%
• 30-yr ≈ $2,528/mo; lifetime interest ≈ $510k
• 50-yr ≈ $2,255/mo; lifetime interest ≈ $953k
• You save ≈ $273/mo now, but pay ≈ $443k more over the life of the loan.
• After 5 years, you’ve paid down ≈ $25.6k on a 30-yr vs. only ≈ $6.2k on a 50-yr (far slower equity).
i!Xbm
