President Donald Trump has proposed using a 50-year mortgage to make home ownership more affordable for people. However, it just seems like a terrible idea, and the math proves it.
The proposal was suggested by Trump and supported by Federal Housing Finance Agency Director Bill Pulte. Right now, while interest rates are 6.26%, the interest paid would be
A 50-year mortgage would lower monthly payments, but only slightly. Is it enough to make a difference? A mortgage for 50 years would also come with significant drawbacks, primarily due to substantially higher total interest costs and slower equity accumulation. A homeowner would make 600…
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