If you buy a $500,000 home with a 20 percent down payment, you’re borrowing $400,000 at 6.125 percent interest.
On a 30-year loan, your monthly payment is about $2,410.
You’ll pay $467,000 in interest.
On a 50-year loan, your monthly payment drops slightly to $2,119.
You’ll pay $871,000 in interest over time.
So you save less than $300 a month, but you hand the bank an extra $404,000 and two extra decades of your life.
That’s not affordability. That’s a lifetime contract with Wall Street disguised as generosity.
And here’s the cruelest part. With a 50-year amortization period, the first 15 to 20 years of payments are mostly interest. The money you pay each month doesn’t build real equity. The principal reduction is minimal. You’re not building an asset. You’re just renting from the bank while thinking you’re buying. It’s ownership in name only, financial servitude dressed up as the American dream.
https://www.grumpychineseguy.com/p/the-50-year-mortgage-a-debt-trap?utm_source=substack&publication_id=5194625&post_id=178384149&utm_medium=email&utm_content=share&utm_campaign=email-share&triggerShare=true&isFreemail=true&r=r7vu0&triedRedirect=true
