Is a 50-Year Mortgage Really the Answer? A Sacramento realtor’s Perspective
There’s been talk about the Federal Reserve possibly supporting 50-year mortgages as a way to make housing feel more “affordable.” On the surface, the idea sounds helpful, especially here in Sacramento, Roseville, Rocklin, and El Dorado Hills where home prices have climbed and first-time buyers are already stretched thin.
But we have to look deeper. A smaller monthly payment is not the same as affordability.
Let’s run real numbers on a $500,000 home with 20% down (common in many Sacramento metro neighborhoods). That means a $400,000 loan at a 6% rate.
30-year mortgage:
Monthly payment: ~$2,398
Total interest paid over the life of the loan: ~$463,353
Payment and interest estimates based on a $400,000 mortgage at 6% calculated using the Mortgage Amortization Calculator at Calculator.com.
50-year mortgage:
Monthly payment: ~$2,106
Total interest paid over the life of the loan: ~$863,372
Payment and interest estimates based on a $400,000 mortgage at 6% calculated using the Mortgage Amortization Calculator at Calculator.com.
That’s about $400,000 more in interest.
So yes, the monthly payment is lower. But the price you pay for that small relief is 20 extra years of debt and nearly double the interest. That’s not affordability. That’s a slow drip that benefits lenders, not homeowners.
And here’s where it matters for your long-term mobility. After 10 years:
On a 30-year mortgage, you’ve paid down about $65,200 in principal.
On a 50-year mortgage, you’ve paid down about $17,300 in principal.
That’s almost a $48,000 difference in real equity. Equity is what lets you move up from your starter home in Natomas, Folsom, or Lincoln, to something bigger when life grows. Without equity, you’re stuck.
The median first-time homebuyer is 38 years old.
If that person takes a 50-year mortgage, the payoff date is age 88.
That’s not a wealth-building strategy. That’s a lifetime of payments.
Meanwhile, you still carry:
Property taxes (which rise)
Insurance (which also rises)
Repairs and upkeep (which definitely rise)
And instead of building ownership, you’re paying mostly interest.
My advice as someone who works in Sacramento real estate every day:
If you’re tempted to wait and see how 50-year mortgages play out, don’t. Time in the market still matters more than timing the market.
Buy something that fits:
Your budget today
Your life today
Your goals for the next 5–7 years
You’ll be much further ahead than someone waiting for a loan product that promises affordability while quietly delaying wealth.
A 50-year mortgage doesn’t fix affordability.
It just stretches debt.
If you want something that actually works in your favor, focus on:
Equity
Manageable monthly overhead
A home that supports your real lifestyle, not a financial illusion
The banks will make money either way. Your job is to make sure you do too.
