#interest-costs

#interest-costs

A 50-year mortgage sounds like the next big innovation in housing finance, a way to make homes affordable again in an era of high prices and stubborn interest rates. But the way I was raised and educated, financial independence and straight talk count. Having studied economics at Texas A&M, I see this for what it is: a long, expensive bet that lasts half a lifetime.

Extending terms from 30 years to 50 years does lower monthly payments but it also substantially increases total interest paid and slows equity accumulation. An Associated Press analysis shows a median-priced home would see monthly principal and interest fall modestly under a 50-year term while the buyer could pay roughly $389,000 more in interest over the life of the loan compared with a 30-year mortgage.

Is the key to making homeownership more affordable just giving buyers more time? That's the pitch from President Donald Trump, who proposed creating a 50-year mortgage. The social media post touting the idea also got a cosign from Federal Housing Finance Agency director Bill Pulte. He said a 50-year mortgage is being worked on and would be "a complete game changer."

The cost of owning a new car in America has reached a staggering milestone. With inflation, tariffs, and interest rates all converging, the average price of a new vehicle has surged to nearly $50,000, according to Bloomberg. For many drivers, that price tag feels out of reach unless payments can be stretched across longer time frames. As a result, the seven-year car loan is no longer unusual - it's becoming the new normal.