Given the lack of affordability in the United States housing market as of December 2025, policy makers have floated the idea of a 50-year mortgage. This begs the question; will it really solve the issue at hand?
In episode 40 of the RiskWire Webcast, Veros’ Sr. Research Economist, Reena Agrawal, explores this question, and more. She discusses the implications of “stretching of loans,” with respect to monthly payments, long-term interest costs, and homeownership affordability in today’s housing market.
Takeaways from the episode include:
- Stretching the loan from 30 to 50 years is beneficial in decreasing the amount you pay monthly. However, in terms of total interest paid, you would likely be paying double the amount that you would with a 30-year loan.
- Switching from a 30-year loan to a 50-year loan would have a negative effect on long-term debt. For example, a buyer taking out a 50-year loan at 35 means they would be making payments until age 85, which is well into traditional retirement years.
- The core problem when it comes to affordability is the scarcity of homes. With this, the true fix to affordability will likely come with the construction of more homes.
Looking to hear an in-depth analysis of the 50-year mortgage? Watch episode forty of the RiskWire Webcast: Webcast & Interviews – RiskWire, powered by Veros
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