BAKERSFIELD, Calif. (KERO) \u2014 The Trump administration is floating a new idea a 50-year mortgage that it says could help more Americans afford to buy homes. But some experts and potential buyers are questioning whether stretching payments over half a century would really make home ownership more attainable, or just more expensive in the long run.<\/p>\n
Bakersfield native De\u2019Shany Wilkason knows the challenges of home ownership firsthand. <\/p>\n
She bought her first home at just 25, but the experience wasn\u2019t quite what she expected.<\/p>\n
\u201cThings break, there\u2019s a lot of upkeep, and maintaining a home is hard,\u201d Wilkason said.Now in her 30s, Wilkason dreams of owning again, but rising prices have made that dream feel out of reach.<\/p>\n
\u201cI\u2019ve seen houses from just a few years ago that are now several hundred thousand dollars more and they just keep climbing,\u201d she said.<\/p>\n
The Promise \u2014 and the Catch \u2014 of a 50-Year Mortgage<\/p>\n
The proposed 50-year mortgage plan aims to lower monthly payments by spreading them out over a longer period of time. That could make it easier for first-time buyers to qualify for a home loan and manage their monthly budgets.<\/p>\n
However, the trade off is time and a lot of extra interest. A longer loan term means buyers would be paying for decades longer than a standard 30-year mortgage.<\/p>\n
Here in Bakersfield, the average home costs around $400,000, and the typical home buyer is about 40 years old. <\/p>\n
A 50-year mortgage would mean 600 monthly payments lasting until the buyer is about 90 years old.<\/p>\n
Local real estate broker Kevin Oliver says while the plan might open the door for some, it\u2019s not for everyone.<\/p>\n
\u201cI think a 30-year plan, if you can afford it, is best for building wealth,\u201d Oliver explained. \u201cBut with prices the way they are, sometimes it\u2019s better just to get into a home, build equity, and refinance later into a 30-year loan.\u201d<\/p>\n
The Long-Term Cost<\/p>\n
While the idea may sound appealing, experts warn that extending payments over 50 years could end up costing homeowners hundreds of thousands of dollars more in total interest.<\/p>\n
Spreading repayment over two extra decades doesn\u2019t just lower the monthly bill it can double the overall cost of the loan.<\/p>\n
That\u2019s why Wilkason says she hopes buyers are given the option, but with careful consideration.<\/p>\n
\u201cA 50-year plan sounds like it could save you money each month, so you might think, \u2018Why not?\u2019 But if you\u2019re a little older, it might not make the most sense,\u201d she said.\u201cHopefully it becomes an option for people \u2014 because everyone\u2019s situation is different.\u201d<\/p>\n
The Bottom Line<\/p>\n
Financial experts say while programs like a 50-year mortgage could make home ownership accessible to more people, it\u2019s important to understand the long-term impact before signing on the dotted line.<\/p>\n
They recommend consulting a financial adviser or mortgage specialist to determine which plan makes the most sense based on income, age, and long-term goals.<\/p>\n
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