ROCHESTER, N.Y. — If you’re in the market for a house, you’re probably faced with a lot of decision-making. When it comes to your mortgage, buyers have various options. News10NBC’s Deanna Dewberry breaks down the pros and cons of a 50-year mortgage.

Some context

The 30-year mortgage was created in 1948 in an effort to make home buying easier and to create a middle class that would support the post-war economy.

Today, high home prices combined with high interest rates have made the dream of owning a home out of reach for many young couples. Currently, the average age of a first-time homebuyer is 40. President Donald Trump has proposed a solution: a 50-year mortgage.

“If you think about it, if I’m 25 and I’m buying a house with a 50-year mortgage, I’m going to be in my 70s before that gets paid off,” said an official. “The function of a mortgage as being a vehicle for wealth creation kind of loses out in that scenario.”

The pro

A 50-year mortgage could lower monthly payments. For a $200,000 home at 6.3% interest with a $5,000 down payment, the monthly payment would be approximately $1,896. A 50-year mortgage, would drop that monthly payment to $1,759, saving $137 a month.

The con

However, the interest paid over 50 years would nearly double. Over 30 years, the interest would total $239,518. But over 50 years, it would rise to $446,988.

“Is this smart financially?” asked Rita. “Well, it all depends on your situation. Is this a temporary thing where you’re taking up say the first 10 years and then maybe you’ll refinance and come up with something a little bit shorter.”

For some, a 50-year mortgage could be the way for some to get their foot in the door of the housing market, with hopes of more favorable financing later.

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