50-year mortgages: What it could mean for homebuyers
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Would it lower monthly payments?

Extending the length of a mortgage is meant to ease monthly payments and broaden access to homeownership. In theory, those savings could amount to a few hundred dollars each month, but that's not guaranteed.

Because longer loans expose lenders to greater risk, they generally come with higher interest rates. That's why 15-year mortgages are currently at 5.5%, compared with roughly 6.2% for 30-year loans.

If rates were the same on a 30-year and 50-year mortgage, a typical homebuyer putting 20% down could pay about $250 less each month with the longer loan -- but would pay far more in total interest over time.
Is buying or renting a home the better option?

If 50-year rates were higher by a similar margin to the gap between 15- and 30-year loans, the monthly savings would shrink to around $60.

"A savings of $150 to $200 isn't really fixing the problem," Dan Frio, a mortgage adviser and host of "The Rate Update," told NewsNation on Monday.

Monthly payment at today's median existing home price of $415,200, assuming 20% down at current interest rates, according to Fannie Mae's mortgage calculator. Calculation doesn't include taxes and insurance.

- - - 15-year fixed mortgage (at 5.5%): $2,714 per month (principal and interest)

- - - 30-year fixed mortgage (at 6.2%): $2,034 per month (principal and interest)

- - - *50-year fixed mortgage (at 6.2%): $1,798 per month (principal and interest)

- - - *50-year fixed mortgage (at 6.9%): $1,973 per month (principal and interest)
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