50-Year Mortgages vs. Our 30-Year DSCR Loans: Lower Payment ≠ Lower Cost

There’s buzz about 50-year mortgages. Yes, stretching the term can trim the monthly payment—but it massively increases total interest and can make future refis harder. Here’s a clear comparison with our 30-year DSCR loans (rates from 5.75%) and why most investors still choose 30.

The core tradeoff

  • 50-year: ~13% lower monthly vs. a 30-year (same rate)…

  • …but roughly ~86% more total interest over the life of the loan.

(Illustrations below assume the same 5.75% rate for apples-to-apples math; actual pricing varies.)

Payment & lifetime interest (P&I only)

Loan Amount 30-yr @ 5.75% 50-yr @ 5.75% Monthly Δ 30-yr Total Interest 50-yr Total Interest Extra Interest
$300,000 $1,750.72 $1,524.07 −$226.65 (−12.9%) $330,259 $614,445 +$284,186
$400,000 $2,334.29 $2,032.10 −$302.19 (−12.9%) $440,345 $819,260 +$378,915
$500,000 $2,917.86 $2,540.12 −$377.74 (−12.9%) $550,431 $1,024,075 +$473,644

Bottom line: If your goal is long-term wealth, the 30-year usually wins—strong DSCR, faster principal paydown, and far less interest drag.

Liquidity & exit risk: why 50-year can paint you into a corner

  • Fannie Mae & Freddie Mac don’t buy 50-year mortgages. Freddie publicly markets 15-, 20-, and 30-year fixed-rate offerings—no 50-year. That means a 50-year loan is typically portfolio or private-label—fewer takeout options later, and refis may come at worse pricing/fees. Freddie Mac

  • Policy chatter isn’t policy. There’s fresh debate about potentially supporting 50-year loans, but that’s not in place today—so secondary-market liquidity is limited. Translation: harder refis if the only buyers are niche lenders holding loans on balance sheet. Politico

Why investors still prefer our 30-year DSCR

  • Rates from 5.75% with Interest-Only (up to 10 years) and ARM options if you want early-years payment relief.

  • Asset-based underwriting: sized to rents vs. PITIA—no tax returns for DSCR.

  • Min DSCR 1.00 (1.15+ recommended for best pricing/cushion).

  • Permanent buydown available: if you’ll hold past break-even, points can raise DSCR and cut the payment without adding 20 extra years of interest.

Want the lowest payment and a smart exit?

Ask us for a same-day side-by-side:

  • 30-yr fixed @ 5.75%

  • 30-yr with I/O (up to 10 years)

  • Buydown scenario with break-even months
    We’ll also map refi/cash-out paths and (where eligible) roll-in costs, so you keep cash on hand and preserve future refi options.

Ready for a DSCR scenario? Send the address, rents (or market), taxes/ins/HOA, target LTV, and your hold period—we’ll return payment + DSCR options that build equity faster and keep your exit routes open.

Not a commitment to lend. Rates/terms/guidelines subject to change and approval. Secondary-market eligibility and refi availability may change with future policy actions.