Why 50-Year Mortgages Are a Trap for Raleigh–Durham Buyers

In a time when home prices in the Raleigh–Durham area are climbing faster than paychecks, it’s easy to see why a proposal for 50-year fixed-rate mortgages might sound appealing. Stretching your mortgage out over half a century promises lower monthly payments—and for many first-time buyers, that feels like a lifeline. But beneath the surface, this policy is a trap: it doesn’t fix the root causes of housing unaffordability and could leave homeowners in debt for a lifetime.

The Trump Administration’s Proposal in Simple Terms

The plan being discussed would allow buyers to take out mortgages with terms as long as 50 years. The idea is simple: by extending the loan, your monthly payment shrinks. On paper, it sounds like the perfect solution for those struggling to break into an increasingly expensive housing market.

But there’s a big catch. While your monthly payment may be slightly lower, the total cost of your mortgage skyrockets. The longer term means decades of interest accumulation, and if you only make the minimum payments, you could be paying well into your 70s—even 80s.

Lower Monthly Payments, Higher Total Cost

At first glance, a 50-year mortgage seems like a dream: lower monthly payments make a home appear affordable. But the reality is far more expensive in the long run.

Let’s break it down using a $350,000 home in Raleigh–Durham (roughly the median price for a starter home in late 2025) at a 6% interest rate:

• 30-year mortgage:
  • Monthly payment: ~$2,098
  • Total interest paid over the life of the loan: ~$405,000
• 50-year mortgage:
  • Monthly payment: ~$1,840
  • Total interest paid over the life of the loan: ~$754,000

Yes, the monthly payment drops by about $258. That sounds attractive. But over 50 years, the total interest nearly doubles compared to a standard 30-year mortgage. You would end up paying $754,000 in interest alone, almost $350,000 more than with a 30-year loan.

Stretching the loan out over half a century doesn’t make a home truly affordable—it just delays the pain while dramatically increasing the total cost. For buyers who only make minimum payments, it’s a recipe for a lifetime of debt and little equity growth for decades.

The Policy Doesn’t Address the Real Problem

Here’s the critical point: stretching loans doesn’t make homes more affordable in reality. The underlying issue in Raleigh–Durham, and across the U.S., is a severe shortage of starter homes that first-time buyers can afford. Even after accounting for inflation over the past century, we’ve failed to build solid, reasonably priced homes that allow people to enter the market and build equity with financial stability.

50-year mortgages are a bandaid. They make a house seem more “affordable” month to month, but they leave buyers trapped in long-term debt. In other words, the policy solves the cash flow problem, not the housing problem.

A Smarter Path Forward

Raleigh–Durham doesn’t need longer debt terms—it needs more affordable homes and smart policy that prioritizes homeowners over investors. Here’s how:

1. Encourage Affordable Housing Construction
   • Incentivize developers to build starter homes priced for first-time buyers.
   • Use zoning reforms and subsidies targeted at affordable housing projects.
2. Restrict Investor Purchases
   • Prevent large-scale investors from buying up starter homes to convert into rentals.
   • Even temporary restrictions or “first-right” periods for owner-occupiers can keep homes in the hands of families building equity.
3. Focus on Sustainable Homeownership
   • Teach financial literacy: saving for meaningful down payments, planning for interest costs, and avoiding loans that stretch debt for decades.
   • Build programs that help first-time buyers enter the market with security, not just low monthly payments.

The Takeaway

50-year mortgages might make headlines, but they don’t solve the real problem: we aren’t building enough affordable homes for people to live in and thrive. In Raleigh–Durham, where demand is high and inventory is tight, these loans could push buyers into decades-long debt without addressing the root causes of housing stress.

Real solutions start with smart construction, policy that prioritizes homeowners, and financial education. That’s how we make housing truly affordable—not by adding more debt to an already stretched system.