Are 50 Year Mortgage Loans a Good Idea?

50 year mortgage loans afford the receiving party lower monthly payments, even on a large loan. Typical mortgages are between 10 and 30 years. Usually, a shorter mortgage means a lower the interest rate. Longer loans come at the expense of a greater cost over time. In order to secure such a long loan, terms other than interest rate may also be adjusted in the bank's favor. For example, there may be high fees for paying off the loan early or refinancing.

There are some cases when a long mortgage may make sense. You may not have an option if you cannot afford high monthly payments. A low or no down-payment may also be the cause of a longer and larger mortgage. You may stand to benefit from a long loan if you feel you can refinance and pay the loan off early in the future. Ultimately, your home equity is often the single greatest asset you own. The sooner you can own your house outright, the higher your net worth and the better your financial health.