The danger of 50 year mortgages

Patriotwise -  While the allure of lower monthly payments is significant, the long-term implications of a 50-year mortgage are concerning. Borrowers could find themselves owing more than their homes are worth, a situation known as being “underwater.” This is particularly risky in markets where home prices stagnate or fall. After a decade, borrowers may have only paid off 4% of the principal, compared to 46% on a traditional 30-year mortgage. This slow equity growth exposes borrowers to excessive interest costs, potentially paying up to 225% of the home’s price over the loan’s lifetime. More