LendingTree Money Insights: Trusted Advice From Our Experts
Half a century of debt? Here’s what a 50-year mortgage would cost you
Published Nov. 11, 2025
President Donald Trump recently floated the possibility of a 50-year mortgage.
A 50-year mortgage would mean lower monthly payments for homebuyers, which would certainly be appealing for those who feel priced out of the market. However, there are also some very real downsides. In exchange for that lower payment, homeowners would likely face a higher interest rate, pay significantly more interest over the life of the loan and build equity more slowly than they would with shorter-term mortgages.
Breaking down monthly payments, interest paid
A 50-year mortgage would likely come with a higher interest rate than a 30-year mortgage, though it’s impossible to know how much higher. However, even if the 50-year mortgage came with the same APR as the 30-year, the math would look quite different.
Here’s a look at the differences in costs for a 50-year mortgage versus a 30-year mortgage on a $500,000 loan with a 6.10% APR — roughly the average current rate for a 30-year, fixed-rate mortgage today.
Monthly payments and total interest paid on a $500,000 loan with a 6.10% APR
| Loan term | Monthly payment | Total interest paid | % of original balance paid in interest |
|---|---|---|---|
| 50 years | $2,669 | $1,101,430 | 220.29% |
| 30 years | $3,030 | $590,791 | 118.16% |
| 15 years | $4,246 | $264,342 | 52.87% |
With a 50-year mortgage, the amount you’d pay in interest in this example would total more than double the original purchase price of the home — a staggering $1.1 million-plus in interest. With a 30-year mortgage, you’d still pay an enormous amount of interest, but nearly half of what you’d pay on a 50-year mortgage. Not surprisingly, the total interest paid on a 15-year mortgage is far lower, though it comes with a much higher monthly payment.
Here’s what it would look like if you increased the APR to 7.00%, roughly the average rate at the start of 2025.
Monthly payments and total interest paid on a $500,000 loan with a 7.00% APR
| Loan term | Monthly payment | Total interest paid | % of original balance paid in interest |
|---|---|---|---|
| 50 years | $3,008 | $1,305,065 | 261.01% |
| 30 years | $3,326 | $697,544 | 139.51% |
| 15 years | $4,494 | $308,945 | 61.79% |
With this higher APR, the interest you’d pay on a 50-year mortgage would equal more than two-and-a-half times the original balance — more than $1.3 million in total.
Finally, here’s a look at what would happen if rates fell to 4.00%, significantly lower than today’s rates but higher than the record low rates seen at the start of the decade.
Monthly payments and total interest paid on a $500,000 loan with a 4.00% APR
| Loan term | Monthly payment | Total interest paid | % of original balance paid in interest |
|---|---|---|---|
| 50 years | $1,929 | $657,121 | 131.42% |
| 30 years | $2,387 | $359,348 | 71.87% |
| 15 years | $3,698 | $165,719 | 33.14% |
Even with these lower rates, you’d still pay $657,121 in interest over 50 years, well more than the original $500,000 balance.
50-year mortgage would mean slower equity growth
With any mortgage, your early years are spent paying more toward interest than to the original loan balance. That means that the equity in your home tends to grow slowly. That is certainly true with a 30-year mortgage, but it’s even more apparent with a 50-year mortgage.
Here’s what that looks like, using the same $500,000 loan and 6.10% APR as the first example.
Timeline for paying off original loan balance on $500,000 mortgage with 6.10% APR
| 50-year mortgage | 30-year mortgage | |||
|---|---|---|---|---|
| Time | Amount of original balance paid off | % of original balance | Amount of original balance paid off | % of original balance |
| 10 years | $20,989 | 4.20% | $80,459 | 16.09% |
| 20 years | $59,559 | 11.91% | $228,310 | 45.66% |
| 30 years | $130,433 | 26.09% | $500,000 | 100.00% |
| 40 years | $260,673 | 52.13% | Not applicable | Not applicable |
| 50 years | $500,000 | 100.00% | Not applicable | Not applicable |
After 10 years of paying on that 50-year mortgage, you’d have only paid about $21,000 on the original $500,000 balance — just over 4%. Compare that to the 30-year mortgage, with which you would’ve paid more than $80,000, or 16%, of the original balance.
Looking out 20 years, the difference is even more stark. With a 30-year mortgage, you’ve paid about $228,000 — nearly half the original balance. With a 50-year mortgage, you’d have paid off about $60,000, or 12%, of the original balance.
That’s a significant development because home equity can be a powerful asset. A 50-year mortgage means that equity will take far longer to grow. It also creates a real risk because it means that a homeowner could more easily be underwater on a loan — meaning they owe more on the house than the house is worth — in the event of a downturn in the housing market. That’s a troubling spot to be in.
Understand what’s right for you
The future of the 50-year mortgage is unclear. However, there’s plenty that home shoppers can do today to lower their mortgage costs, regardless of what comes of the 50-year mortgage.
One of the most impactful pieces of advice is also the simplest: Shop around. You can compare rates from multiple lenders before you apply for a loan. Recent LendingTree research shows that the savings can be massive:
- November 2025: “Refinancing at the best available rate could save you $50,000 or more over your current mortgage.”
- June 2025: “Borrowers could save an average of $80,024 over the life of a 30-year, fixed-rate mortgage by shopping around.”
Those are substantial savings that can have a real impact on people’s finances, but only if you take action.
Matt’s thoughts on the New York Fed quarterly debt report
Published Nov. 5, 2025
Here’s what LendingTree chief consumer finance analyst Matt Schulz has to say about the Nov. 5 release of the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, which is generally considered the gold standard tracker of consumer debt and credit in the U.S.:
- “Mortgage debt, auto loan debt, credit card debt, student loan debt and overall debt are all the highest they’ve ever been. That’s troubling. It isn’t uncommon to see debt climb in the third quarter, but these record debt levels are another sign that it might be a tough holiday season for Americans.”
- “Debt will almost certainly continue to rise in the fourth quarter, in part because it almost always does. Holiday shopping is a huge part of that, and this year should be no different. While lower interest rates, thanks to the Fed, should help, there’s little reason to believe debt won’t grow in the coming months before slowing down after the first of the year.”
- “Rising debt in this country is never about one thing. It’s always a mix of confidence and struggle. Some people take on debt because they want to, while others do so because they don’t have any other choice. Both scenarios are taking place all over America today, but I believe that more of the debt growth right now comes from struggle than from confidence.”
- “As Americans’ mountain of debt grows, people need to understand they have far more power over their money than they think they do. They have to be willing to wield it, though. For example, a 0% balance transfer credit card can be a powerful weapon against credit card debt, as can a debt consolidation loan. Refinancing may be a possibility for some homeowners struggling to make payments. Shopping around and getting preapproved for financing can help you keep costs down when buying your next vehicle. Even a simple call to a creditor during a short-term rough patch can make a major difference. Most lenders have hardship programs in which they can temporarily reduce interest rates, waive fees, defer payments and make other tweaks to help you manage things better. These steps can have an impact on your financial life, but only if you pursue them. It can be worth your time to do so.”
Matt’s thoughts on this week’s Fed meeting
Published Oct. 27, 2025
Here’s what LendingTree chief consumer finance analyst Matt Schulz has to say about this week’s Federal Reserve meeting, set for Oct. 28 and 29:
- Another Federal Reserve rate cut would be good news for Americans wrestling with debt. Yes, this cut will likely be small — it’s widely expected to be 0.25 percentage points — but when combined with the previous one and the promise of more, it’s a reason for cautious optimism for debt-weary Americans.
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Mortgage rates have fallen to their lowest levels in more than a year. While there’s no guarantee that the downward trend will continue, a rate cut might spur more Americans to consider jumping back into the housing market after sitting on the sidelines.
- Home shoppers need to understand that Fed rate cuts don’t always lead to lower mortgage rates. The Fed is just one factor in determining mortgage rates. But at a minimum, cuts are a reason for potential home shoppers to be hopeful about the future.
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The average interest rate on a new credit card offer is 24.19%, having fallen for the first time since March in the wake of the Fed’s last cut. That downward trend is only going to accelerate in the next few months, as banks implement the September and (most likely) October rate cuts. Still, even if the Fed steps on the gas in the coming months, credit card rates aren’t going to go from awful to amazing overnight.
- If you have $7,000 in debt on a credit card with a 24.19% APR and pay $250 a month on that card, it’ll take 42 months and $3,411 in interest to pay off that balance.
- Lower that a quarter-point to 23.94% and you’ll need 41 months and owe $3,350 in interest to pay it off. (A savings of one month and $61.)
- Drop it another quarter-point to 23.69% and you’ll need 41 months and owe $3,290 in interest to pay it off. (A savings of one month and $121 from the original calculation.)
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For savers, it’s likely time to act to lock in today’s high rates. Yields on high-interest savings accounts and certificates of deposit (CDs) are only going to keep dropping. It may be wise to consider a longer-term CD as rates continue to fall.
- If you haven’t shopped around for a high-yield savings account, it’s still worth your time. While yields will be well below the peaks in recent years, they’ll still likely be better than what you’d get from a traditional savings account with a megabank.
- People need to understand that they can have a far bigger impact on their interest rates than the Fed will. By comparing rates from multiple lenders, getting a 0% balance transfer credit card or even calling your lender and asking for a lower rate, you can find significantly bigger reductions than you’re likely to ever get from the Fed.
Federal Reserve cuts rates for first time since December
Published Sept. 17, 2025
The Federal Reserve lowered interest rates by a quarter-point on Sept. 17 — the first time in 2025. This is good news for those struggling with credit card debt, but not so great for savers.
Here’s what you need to know.
Credit card rates are about to fall
When the Fed moves, card interest rates usually follow, meaning Americans should soon see relief on existing balances and new card offers. While any reduction is welcome news, one rate cut is unlikely to have a significant impact, though.
For example, if you owe $7,000 on a credit card with a 24.36% APR — the average APR on new credit card offers, per LendingTree data — and pay $250 a month on that card, it’ll cost you $3,453 in interest and take 42 months to pay off.
Lower the APR by a quarter-point to 24.11% with the same balance and monthly payments, and it’ll cost you $3,391 in interest and take 42 months to pay off. That’s a savings of $62 over the life of the balance, which is significant but isn’t exactly life-changing either.
Rates for home equity lines of credit (HELOCs) are also typically tied to the Fed’s movements, so those should move lower as well after the rate cut.
Impact on other loan rates not as clear
There’s certainly hope that the Fed’s actions will lead to lower rates on mortgages, auto loans, personal loans and other types of loans, but there are no guarantees. That’s because these types of loans’ rates aren’t directly tied to the Fed’s actions the way that credit card and HELOC rates tend to be.
In fact, mortgage rates went up amid the Fed’s rate cuts last fall. However, since mortgage rates have fallen significantly in recent months, there’s reason for optimism that the Fed’s moves will help mortgage rates continue to move lower. Still, that’s far from a sure thing.
Returns on high-yield savings accounts, CDs likely to fall, too
Even though the yields from high-yield savings accounts (HYSAs) and CDs are down from highs a year ago, people have still been able to get substantial returns — often 4.00% or higher — throughout 2025. Now that the Fed has begun lowering rates again, those yields are likely to follow suit.
Still, rates won’t change from excellent to awful overnight. It’s still worth your time to shop for a HYSA if you haven’t already done so. It’s also worth considering buying a longer-term CD — perhaps with a maturity of a year or longer — to lock in rates for a little longer. Just make sure you won’t need to access those funds before maturity hits. Otherwise, the penalty costs could outweigh any extra interest you might’ve earned.
You have more power over your rates than the Fed
No, really. It’s true. Simple moves you make can have a far bigger impact on your interest rates than the Fed will.
- Comparing mortgage offers from multiple lenders can help you secure a lower rate and save you tens of thousands of dollars over the life of the loan.
- Getting a 0% balance transfer credit card can significantly reduce your interest and shorten your payoff time on a transferred balance.
- Consolidating debts with a low-interest personal loan can lower your interest rate and reduce the number of bills you have to pay each month.
- Calling your credit card lender and asking for a lower interest rate can be a big step. A 2025 LendingTree study found that 83% of cardholders who asked for a lower APR on a credit card in the past year got one, and the average reduction was more than 6 percentage points.
You have much more power over your money than you think. While there’s no guarantee these steps will be successful — for example, you may need to have a credit score of 680 or higher to get a 0% balance transfer card — they’re worth the effort.
35% of cardholders wouldn’t cancel if their annual fee jumped $100
Published Sept. 16, 2025
“If your primary credit card’s annual fee rose by $100 without adding any benefits, would you keep it?”
LendingTree asked this question in July to more than 800 Americans with an annual fee credit card, and 35% said yes.
I was stunned. Closing a credit card isn’t something to be done lightly, but the fact that more than 1 in 3 people we asked would willingly absorb a $100 annual fee increase without getting anything new in return blew me away.
High-income earners, millennials ages 29 to 44, Republicans and men are among the most likely to say yes. Here’s a closer look.
- 50% of those making $100,000 or more a year say they’d keep the card, versus no more than 31% among lower-income brackets
- 46% of millennials, versus 39% of Gen Zers ages 18 to 28, 33% of Gen Xers ages 45 to 60 and 10% of baby boomers ages 61 to 79
- 44% of Republicans, versus 35% of Democrats and 28% of independents
- 44% of men, versus 25% of women
We wanted to ask this because sky-high annual fees have been in the news lately. Several major credit card issuers have introduced new high-annual-fee cards or announced plans (or been rumored to do so soon) to hike the annual fee on a current high-annual-fee card. Unlike the hypothetical card in our question, these updated cards are expected to come with at least some new benefits. Still, given that many high-end cards already have annual fees of $500 or higher, any new increases are noteworthy.
There’s risk for card issuers with any annual fee increase. A 2024 LendingTree survey of credit cardholders (including those who don’t have an annual fee card) found that just 9% of cardholders would consider paying an annual fee of $400 or more on a card, including 3% who said they’d be willing to pay $1,000 or more depending on the benefits. Meanwhile, 45% would never pay an annual fee and another 30% would never pay $100 or more for one.
Still, the results of our July survey clearly show that people haven’t hit their ceiling when it comes to credit card annual fees. That means we can expect to continue seeing banks push the envelope in the future.
What to do in case of an annual fee increase
- Ask for a fee waiver or reduction. A separate 2025 LendingTree survey found that a stunning 95% of cardholders who asked to have an annual fee waived or reduced in the past year got their way, though just 39% of those with an annual fee credit card asked. It stands to reason that a bank might be more willing to waive an $89 fee than a $695 fee, but it can’t hurt to ask. That 95% success rate means that it isn’t just people with low annual fees, 800 credit scores and long track records getting their way.
- Downgrade to a no-annual-fee version. This isn’t always possible, but it’s certainly worth asking about. When it comes to your credit, downgrading isn’t seen as closing an account and opening a new one. Instead, it’s seen merely as changing to a different version of the same card.
- If all else fails, it’s likely OK to cancel the card. Generally speaking, when in doubt, you should probably just keep that credit card you’re considering closing. One major exception to that rule is when an annual fee is involved. If a card has an annual fee and you know that you’re not going to use it anymore, you’re likely better off canceling the card. There’s no need to pay that annual fee just to protect your credit.
Credit pro tip: If you cancel the card, consider asking for a credit limit boost on another one of your cards. That new credit can replace the available credit you lost with the newly closed card and minimize the damage the closing did to your credit.
