After 10 years on a 500k 50-year mortgage, you’ll have paid $325k for $18k in home equity.

Nov 9, 2025 · 5:23 PM UTC

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Replying to @PresentWitness_
.....and, home value increased about $175,000 at only 3% per year during that time. That's some nice equity.
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Replying to @PresentWitness_
@grok what’s this house worth after 10 year at an annual appreciation of 3.5% per year? Also what tax benefit might this home owner have enjoyed for this same 10 years?
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Replying to @PresentWitness_
50 year mortgage is better than no mortgage. Net-worth of the buyer will increase with the value of the house. 30 year mortgage set up should still be available if the buyer prefers/can afford. Increased options are good.
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Replying to @PresentWitness_
By the way interest only loans are very common in commercial real estate. I can't imagine how people would respond if interest only loans were available to residential real estate! It would be fantastic...for some. These are products, pick the loan that works for you.
Replying to @PresentWitness_
Don't worry nobody is getting a 50-year mortgage.
Replying to @PresentWitness_
Which is… checks notes - 18K more equity than you’d have otherwise. Not to mention appreciation of the asset, tax savings etc….
Replying to @PresentWitness_
How much equity did you build as a renter during that time? How much did rent go up in 10 years.
Replying to @PresentWitness_
Does that include equity from market value appreciation? How much equity do you have after renting?
Replying to @PresentWitness_
That’s why you gotta make extra payments toward the principal. 1 extra a year almost cuts the life of the loan in half!
Replying to @PresentWitness_
Why not a 1 million year mortgage? Nothing wrong with that. The longer time horizon is simply a bet on interest rates going up.
Replying to @PresentWitness_
You have extra monthly income to invest, plus capturing equity in the rise of home value.
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Replying to @PresentWitness_
And saved 360k in rent
Replying to @PresentWitness_
But inflation may increase the value of the home by 50 to 60 percent.
Replying to @PresentWitness_
This is how wealth is transferred, not created. A treadmill disguised as a ladder.
Replying to @PresentWitness_
Now do rent.
Replying to @PresentWitness_
And home value increased. And your payment is still the same while all the renters had 10 years of step-ups.
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Replying to @PresentWitness_ @1776_raw
No one says u won’t pay off early and at the end of 50yrs it’s likely the home went up in value and you can move up or will it to an heir. Renters have zero and zero tax write off.
Replying to @PresentWitness_
This assumes the property does not appreciate in nominal value. Can you find a 10 year period in recent history when nominal home values did not appreciate?
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Replying to @PresentWitness_
On the upside 🙄 You can itemize instead of taking the standard deduction on tax returns for approx 35 years
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Replying to @PresentWitness_
You buy a $700,000 house at 30 (6% interest rate, 50 year term). After 10 years (you're 40 now), you ask, how much of my $3,666 monthly payment went to paying down this fxcking mortgage? Answer ~$332 How much of the payment is interest: ~$3,333 btw, that $3,666 is before property taxes and all your other bills.
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Replying to @PresentWitness_
Totally insane.
Replying to @PresentWitness_
You will also have exceeded the life of a mortgage by a lot. They will be refinanced as soon as something better comes along .. date the rate
Replying to @PresentWitness_
I guess you can continue renting and not have to deal with ANYTHING!! No one is forcing you into a 50 year loan, and by the way, when you sell your house, hopefully you will sell it at the "market" price, so your equity will be larger.
Replying to @PresentWitness_
I don’t care. I just want the lower payment in retirement. Can’t take the equity with me.
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Replying to @PresentWitness_
Good luck to them when they try to sell, and don’t even have enough equity to pay real estate agents. It will be interesting to see how many of these 59 year loans end up in foreclose
Replying to @PresentWitness_
or you could just not get a 50 year mortgage. or you could get one for two years and then refinance or you get one for six months and refinance give me a break...
Replying to @PresentWitness_
Mortgage rates are the problem! @realDonaldTrump
Replying to @PresentWitness_
Yes, and you will have been using their money for 10 years at that point. It's no different than any other investment that they make.
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Replying to @PresentWitness_
Not enough to pay realtor commissions and closing costs if they want to move
Replying to @PresentWitness_
Sign me up, but make it 200 years and I double promise to pay it off
Replying to @PresentWitness_
This assumes zero inflation. Which is not true.
Replying to @PresentWitness_
Ok who cares? If you do a 10 year interest only on a $50OK house then you build zero home equity in 10 years. Good lord people you understand that you can pay additional principal whenever you want to to build that home equity this just gives you flexibility to do that on your own.
Replying to @PresentWitness_
It would probably be wiser to buy a less-expensive home with a shorter mortgage term
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Replying to @PresentWitness_
I’d like a 1000 year mortgage at 3%.
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Replying to @PresentWitness_
Assuming no appreciation or depreciation
Replying to @PresentWitness_
You left out the value of the house, which has gone up a lot over 50 years.
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