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GOBankingRates
GOBankingRates
Gabrielle Olya

The Hidden Cost of a 50-Year Mortgage: Nearly $1M Extra Interest in One City

HaizhanZheng / Getty Images

President Donald Trump’s proposal to introduce 50-year mortgages promises smaller monthly payments, but borrowers would pay dramatically more in total interest and build home equity far more slowly. A new Realtor.com analysis found exactly how significant that extra interest could be, and in some cities, it’s nearly $1 million extra.

The analysis compared mortgage costs for a traditional 30-year term versus a 50-year in three types of real estate markets. Crunching the numbers revealed an alarming truth: the interest is killer.

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