Lower monthly payments can look appealing, especially in today’s housing market. But when you compare a 30-year mortgage to a 50-year mortgage, the difference in long-term cost is staggering.
On a $320,000 loan, a 30-year mortgage at 6.25 percent costs about $390,000 in interest.
Stretch that to 50 years, and the interest balloons to roughly $725,000. That extra $335,000 is nearly the price of the home itself.
Affordability isn’t just about the monthly payment. It’s about the full financial picture. Understanding the math is critical before choosing a loan term.
