Is a 50 Year Mortgage Worth It in San Diego? Here Is What the Numbers Really Say

Is a 50 Year Mortgage Worth It in San Diego? Here Is What the Numbers Really Say

There has been a lot of talk lately about the idea of a 50 year mortgage. On the surface, the appeal is obvious, stretch the loan longer and the monthly payment feels lighter. For many buyers in San Diego, where prices are higher than most markets, that sounds like a win.

But when you look past the monthly payment and into the long term cost, the story changes quickly.

A Real San Diego Example

To get a realistic picture, let us use a sample home price of $930,000, which is close to the current median in San Diego. With a 20 percent down payment, you would be financing $744,000.

Here is how the two loan options compare.

30 Year Mortgage

• Loan term: 30 years

• Interest rate: 6.50 percent

• Monthly principal and interest: about $4,700

• Total interest paid over the life of the loan: about $949,000

50 Year Mortgage

• Loan term: 50 years

• Interest rate: 7.00 percent

• Monthly principal and interest: about $4,480

• Monthly savings compared to a 30 year loan: about $220

• Total interest paid over the life of the loan: about $1,942,000

The Real Cost of That Lower Payment

Saving $220 a month feels helpful, especially in an expensive market. However, the long term cost is significant. A 50 year loan adds roughly $993,000 in extra interest. That is almost an entire additional mortgage in interest alone.

Beyond the cost, it also slows down how quickly you build equity. More of your monthly payment goes toward interest for a much longer period, which delays the financial benefits of owning a home.

So, Is It Worth It?

For some buyers, a lower monthly payment may help them qualify or feel more comfortable. For others, the long term cost far outweighs the short term savings. The right answer depends on your budget, your timeline and your financial goals.

Understanding the full picture is the key. A smaller payment today does not always mean a better investment tomorrow.

Want to See Your Own Numbers?

If you want a personalized side by side comparison based on your price point, interest rate and budget, I am happy to run the numbers for you. A quick breakdown can help you make the most informed decision for your future.