Mahoney Knows Homes: My Thoughts on the Proposed 50-Year Mortgage
“Mahoney Knows Homes” is the Gazette’s expert real estate column. Author Jack Mahoney is a realtor in Kingston Springs who is driven by a mission to deliver top-tier service, trusted market insight and meaningful value to the community he calls home.
Before I begin, I want to be clear: I am not a financial advisor, mortgage lender or bank representative. This column is simply my opinion based on real-world experience working with clients as a Realtor in Middle Tennessee.
The Idea of a 50-Year Mortgage
The American Dream has always revolved around homeownership. Whether your version includes a white picket fence, kids running around the backyard or burgers on the grill, the home has traditionally been the centerpiece. It’s where we unwind, make memories and build generational wealth.
I’m a huge proponent of owning your home. You might think, “Well of course he is, he’s a Realtor.” Fair. But beyond the job title, real estate has historically been one of the strongest, most reliable long-term investments available to Americans. Simply owning, maintaining and paying down your home has proven to increase net worth over time.
That said, when a new loan product hits the market, I’m not the type to champion it just because it could help me close a deal. The worst call I could ever get from a client is the one that starts with, “I made a mistake,” or “No one told me this could happen.” I’ve seen too many salespeople push short-term “solutions” that created long-term problems: adjustable-rate mortgages and even the 2-1 buydowns we saw everywhere after 2022.
So when the idea of a 50-year mortgage was announced recently, my skepticism kicked in immediately.
Who Does This Really Help?
The narrative being pushed is that a 50-year mortgage “makes homeownership affordable again.” Lower payments. More buyers qualifying. A path into the market.
Most people who would consider a 50-year mortgage are first-time buyers frustrated with high rates and rising prices.
And yes, on paper, the monthly payment may drop by $200–$300 compared to a 30-year loan. In the short term, that sounds like a win.
But here’s the reality:
According to UBS, total interest on a 50-year mortgage adds up to roughly 225% of the home’s price — more than double a traditional 30-year mortgage.
Thats right, over the life of the loan you end up paying over double the price of the house in interest alone.
To me, that’s not a “more affordable” product. That’s a bank-friendly product.
The Age Problem No One Is Talking About
The National Association of Realtors says the average first-time homebuyer today is 40 years old.
So let’s play out the math:
- Buy your first home at 40
- Take on a 50-year mortgage
- Pay it off at 90 years old
That’s 12 years past the average American life expectancy.
Personally, if I’m lucky enough to live to 90, I don’t want to spend my last decade writing mortgage checks.
I understand this is subjective, and most people will not own their property for 50 years. But asking the average buyer to commit half a century of their life to repay a loan is something we should take seriously.
Does This Actually Make Housing Affordable?
To me, the answer is no.
If buyers can’t afford current prices and sellers can’t sell, basic economics tells us what eventually happens: prices come down.
Stretching a mortgage to 50 years doesn’t solve affordability, it masks it. It props up prices artificially while doubling bank profits through interest.
And let’s be blunt: the only obvious winner in a 50-year mortgage scenario is the lender.
The Bigger Picture
Maybe I’m oversimplifying. Maybe there are secondary effects policymakers are considering — stability, inventory shortages, generational financing, who knows.
But at face value?
- Paying 225% of your home’s value in interest
- Carrying a mortgage potentially into your 80s or 90s
- Propping up housing prices artificially
- Encouraging buyers to take on excessive long-term debt
None of that feels like a move in the right direction.
If affordability is the problem, extending the debt horizon isn’t the fix. Letting the market correct, building more housing, easing zoning and addressing supply constraints would do far more good than a 50-year mortgage ever will.
