50-Year Mortgage: Is it the Real Solution for Affordability?

On the RiskWire Webcast, episode #40, Veros’ Sr. Research Economist analyzes the viability of a 50-year mortgage as a potential solution to the ongoing affordability crisis in the United States.

Key Points:

Assessing the Impact of 50-Year Mortgages on Housing Affordability
// Given the ongoing lack of affordability in the United States housing market as of December 2025, policy makers have introduced discussions around the possibility of a 50-year mortgage. This proposal raises important questions about whether such an option could effectively address the current challenges in the housing market.

Insights from RiskWire Webcast Episode 40
// In episode 40 of the RiskWire Webcast, Veros’ Senior Research Economist, Reena Agrawal, delves into the topic of extended mortgage terms. She analyzes the implications of “stretching of loans,” focusing on how this approach affects monthly payments, long-term interest costs, and overall homeownership affordability.

Monthly Payments vs. Total Interest Paid
// One key takeaway is that while extending the mortgage term from 30 years to 50 years may reduce the monthly payment amount by 10%-12%, borrowers end up paying nearly double the total interest compared to a traditional 30-year loan. This means that the long-term financial cost of homeownership increases substantially for those who choose a 50-year mortgage.

Long-Term Debt Considerations
// Switching to a 50-year loan also has consequences for long-term debt. For example, a homebuyer who takes out a 50-year mortgage at age 35 would be making payments until the age of 85, extending well into typical retirement years. This prolonged debt burden may create additional financial challenges later in life.

The Core Issue: Housing Scarcity
// Ultimately, the main factor driving affordability concerns is the scarcity of available homes. While longer mortgage terms may offer temporary relief in terms of lower monthly payments, the underlying problem of limited housing supply remains. Addressing affordability will likely require increased construction and expansion of housing options, rather than simply extending loan terms.