My coworker suggested a 50-year mortgage, now I'm confused

He swears it's the best way to go. I can't find info on it.

3 comments

3 Comments

Whoa a 50 year mortgage is a real thing? That is just wild to me. I mean you would literally be paying that thing until you're like 80 years old. The amount of interest you would pay over that time is just crazy to think about. Maybe it's just me but that sounds like being in debt for your whole life. Your coworker might mean well but that is some scary advice. You should talk to a real financial person, not just a coworker.

richard5784mo ago

Honestly, nobody's talking about how inflation could eat away at that debt over time. Money in 50 years will be worth way less, so your monthly payment might not seem so big later on. But yeah, the interest is still a killer, and you're basically betting on your income keeping up. It's like a gamble on the future economy. For some folks, it might be the only way to get a house now, but it's risky as hell. Really need to crunch the numbers with a pro before even considering it.

fiona_fox5624d ago

Man I feel this so hard. My buddy Mike got a 40 year loan back in '09 and me and him sat down and did the math one time. That inflation thing is real, like what's $1,200 a month gonna feel like in 2049? Probably like chump change if you ask me. But the catch is you gotta stay employed that whole time and not get hit by a bus or something. I saw his amortization schedule and it was brutal how much went to interest in the first 20 years. Still though, for folks like us who don't have a pile of cash sitting around, it's the only door that opens sometimes. You just really gotta sit down with a calculator and a banker who ain't trying to sell you something.