✨The 50-Year Mortgage Sparked a Debate… But the Real Opportunity Is Here

Why the 50-Year Mortgage Isn’t the Hero… But Still Helped

November brought a surprising headline: President Trump floated the idea of a 50-year mortgage. While it may not be the best long-term solution, it did kick off an important conversation — how can lenders reduce payments without adding 20 more years to a loan?

And that’s where things get interesting.

Why the 50-Year Mortgage Isn’t the Answer

A longer term reduces payments, but slows equity dramatically.

Example on a $400,000 loan at 6.25%:

• 30-year payment: $2,463

• 50-year payment: $2,180

• Savings: $283/mo (11.5%)

But the tradeoff is big:

• $15,000 in principal paid in 3 years on a 30-year

• Only $3,800 paid on a 50-year

• It could take 9–10 years to build the same equity

That creates challenges for future cash-out needs like repairs, upgrades, or emergencies.

Still, the idea has led lenders to explore new products aimed at reducing payments without extending loan terms — a promising shift.

Affordability Is Quietly Improving Already

The best part? Buyers may not need a 50-year loan at all.

Prices Are Down

• Under $400K: 10–14% below 2022 peak

• Down 3–5% in the last year

Rates Are Down

• Now ~6.25% vs 7.25% at the start of the year

• About 0.5% lower than last summer

Together, lower prices + lower rates = Payments down 13–15% year-over-year.

Plus: Seller-Paid Buydowns

• 60–70% of sellers under $400K are offering temporary buydowns

• Many buyers get ~20% off their first-year payment

More Supply + Growing Demand

Below $300K in Greater Phoenix:

• Inventory: +39%

• Prices: –5%

• October sales: +21%

• November contracts: +32%

More options, more leverage, and more breathing room for buyers.

Wages Are Outpacing Inflation

According to the BLS:

• Phoenix wages: +12% over two years

• Local inflation: +3.3%

Higher income + lower payments = Affordability returning faster than most people realize.

What This Means for You

The affordability picture has improved significantly through:

• Lower rates

• Lower prices

• Strong wage growth

• Seller incentives

• Rising inventory

• New lending products in the pipeline

If you want a personalized look at what your monthly payment would be today — with current rates, price drops, and seller incentives — send me a note and I can connect you with a top tier lender to help run the numbers for you.

Book your strategy session by scheduling a quick call with me or contact me here.