Why would you want a 50 year mortgage? for a normal 30 year mortgage you are more then paying double the home price when all the interest is paid.
Another issues is we are seeing hints that even the 30 year mortgage may go away. Why? the average home owner lives in their home 7 to 10 years now. So really only a 15 or 20 year amortized mortgage is all that is needed.
Home buyers may notice a new kid on the block: the 50-year mortgage.
Some mortgage lenders see the idea as an alternative to "interest only" loans and a tool to shrink those monthly obligations.
Essentially you'll be able to buy a more expensive home than you could qualify for otherwise."
Some consumer advocates and financial professionals worry that buyers who need to stretch payments over 20 more years are coveting too much house.
A 50 year mortgage still is not building net worth, It's just keeping a family in debt longer."
A 50-year plan is better for the borrower than an interest-only or payment-option adjustable-rate mortgage. In an interest-only mortgage, the minimum monthly payment means zero is being applied to the outstanding balance.
A payment-option ARM can be worse -- sometimes the minimum monthly payment doesn't even cover the interest accrued that month. You could make a minimum payment one month and find the next month that the outstanding balance grew.
While the 50-year fully amortized mortgage certainly means a slower rate of repaying the balance, at least the balance is being reduced, not remaining stagnant or increasing.