The 50-year mortgage is a trap. Let's break it down..
The average home price in Maryland is around $437k.
In Southern Maryland, about $400k (per Redfin).
$400,000 Mortgage at 6%
30-Year Mortgage:
- Monthly Payment: $2,398
- Total Paid: $863,352
- $463,352 of that is interest
50-Year Mortgage:
- Monthly Payment: $2,106
- Total Paid: $1,263,552
- $863,552 of that is interest
So the 50-year loan saves you about $292 per month today, but costs over $400,000 more in interest over time.
Interest is the problem.
And the bank understands this perfectly.
If you’re 30, that means making mortgage payments until you’re 80. Gen Z already struggles to afford homes. This does not fix the problem. It just locks people into more debt for most of their lives.
Instead of ending the policies that made homes unaffordable, they want to propose a new way to ensure lifelong borrowers.
This is not housing affordability.
This is financial entrapment.