Avoid the Rental Trap in 2023

You’ve probably seen the buzz lately about 50-year mortgages possibly hitting the U.S. market soon. If you haven’t come across it yet, you probably will—whether in a headline, a newsfeed scroll, or it’ll just be an option the next time you’re house hunting. At face value, it sounds like a pretty sweet deal for anyone feeling squeezed by prices and rates. Stretch the payments out over half a century, and suddenly that monthly bill looks a whole lot friendlier. What’s not to love, right? Well, that depends on your perspective. So before deciding whether this could be a game-changer or just another gimmick, let’s make sure you’ve got enough info to have an informed opinion… Lower Payments? Yes. Lower Costs? Not Exactly. For many, the appeal comes down to affordability. A longer loan term could help buyers qualify for homes that might otherwise be out of reach, or simply make monthly payments more comfortable. That part is true, but where there’s a “gimme” there’s a “gotcha.” While the monthly payment may drop, the total cost over time can skyrocket. Stretching a loan over half a century means paying additional interest for half a century. The “savings” you feel each month could easily be swallowed up—and then some—by what you’ll ultimately pay in interest. Just Another “New” Option A 50-year mortgage might sound new and exciting, but it’s really just another option that isn’t currently offered. (Well, at least not all that often.) Buyers already have plenty of choices when it comes to loan terms: 10-, 15-, 20-, and 30-year mortgages are all standard options. Add in the mix of fixed-rate and adjustable-rate structures, and you’ve got a wide range of combinations designed to fit different financial situations. But more often than not, people lean toward the 30-year fixed rate loans. Technically, 40- and even 50-year mortgages already exist, though they’re rare in the U.S. and typically not backed by government programs. According to The White Coat Investor , they’re far more common in Europe, where ultra-long-term loans have been part of the financial landscape for years. A Matter of Perspective Whether a 50-year loan sounds appealing often comes down to your personal philosophy, and your tolerance for long-term debt. Some buyers lean toward shorter-term loans—like 15 or 20-year mortgages—because they want to own their home free and clear sooner and pay less in interest. Someone taking this approach, especially with a 15-year fixed or adjustable-rate mortgage, is often very disciplined about paying extra each month to chip away at the principal. To them, the vast majority of people opting for a 30-year fixed loan might look like they’re squandering money by stretching payments out unnecessarily and paying far more interest than they need to. On the flip side, 30-year borrowers often see the world differently. They value lower monthly payments and the flexibility it provides—whether to invest elsewhere, cover lifestyle costs, or just have breathing room in the budget. To them, those who aggressively tackle a 15-year loan might seem either a little extreme… or just downright wealthy to be able to afford such high payments. So, just like 15-year buyers might shake their heads at 30-year loans, 30-year borrowers will likely question a 50-year term. The point is, there’s no “right” choice. It’s about what makes you comfortable financially and psychologically. Is It Worth the Monthly Savings? Whether the monthly savings makes sense really depends on your perspective and personal situation. Everyone’s circumstances are different, so this is a question only you can answer for yourself. When you’re considering what type of loan and terms to choose, you’ll need to crunch the numbers at that moment—current rates, your credit score, and other factors will all play a role. But to give you some general perspective, HousingWire did some math you might find useful. According to the article, stretching a loan out to 50 years might shave around $100–$200 off your monthly payment compared to a 30-year mortgage. That’s not nothing—it could make a tight budget feel a little more comfortable. However, because you’re paying interest for an extra 20 years (or more), the total cost over the life of the loan can balloon dramatically. In the examples they gave, the interest payments were more than double what they would have been with a 30-year loan. And we’re talking hundreds of thousands of dollars. That “nice little savings” each month comes at the expense of paying far more in the long run. So yes, you’ll feel relief each month with a lower payment, but over decades, your home ends up costing a lot more than the purchase price. That’s the trade-off. A 50-year mortgage isn’t inherently bad; it’s just a choice between short-term comfort and long-term savings. And it’s a choice worth thinking through carefully before signing anything. The Takeaway: The idea of a 50-year mortgage might sound like a silver bullet for housing affordability, but the reality is more nuanced. Sure, it could make monthly payments a bit lighter—but it could also cost much more in the long run and potentially nudge home prices even higher. As with most things in real estate, there’s no one-size-fits-all answer. It’s not necessarily right or wrong, it’s about what’s right for you. The key is to understand exactly what you’re signing up for before committing to a loan that could last longer than most careers.

A recent Realtor.com article explored whether single-family or multifamily homes build wealth faster. Spoiler alert: it’s single-family homes. At least, that’s what the data suggests. But if you take that at face value, it can make buying a multifamily property sound like a bad decision. The truth is, there’s no way to say that’s absolutely true. Real estate values depend on too many variables to base such a big decision on a headline—or even on solid data that might be right most of the time. The right property, at the right price, in the right market could easily turn that claim on its head. The bigger question isn’t which property type performs better on average. It’s which one makes the most sense for you. For plenty of buyers, a multifamily property can actually help them build equity faster than if they bought a single-family home. In fact, it could be a smarter financial and lifestyle decision for you even if it doesn’t build more equity as quickly. Because for a growing number of buyers, it’s not just about which type of home builds equity faster. It’s about which one fits the needs of their family, or simply makes owning a home at all possible. Is a Multifamily Home Right for You? There are plenty of reasons someone might choose a multifamily property over a traditional single-family home, and it doesn’t always have to be about chasing rental income or investment returns. Of course they’re often owned by investors who are using them to generate income and build wealth, but here are a few types of buyers that also could benefit from buying one: Buyers who can’t quite make the numbers work on a single-family home. For many people, buying a single-family home just isn’t realistic right now. A duplex or triplex can make the math work by generating income from the other units. That rental income can help cover a big portion of the mortgage, sometimes bringing monthly costs down to what they’d pay in rent—or even less. First-time buyers who want to get into the market sooner rather than later. Instead of waiting and saving for years to afford a single-family home, buying a small multifamily property can be a faster entry point. Living in one unit allows you to qualify for a primary residence mortgage, which often comes with better terms than an investor loan. Multigenerational families who need both space and proximity. More families are living together these days, but that doesn’t mean everyone wants to share the same kitchen. (Or more importantly…bathrooms!) Multifamily homes let extended families live under one roof while still having privacy and independence. Buyers who want to turn their first home into a long-term investment. A multifamily home can be a stepping stone. Live in one unit for a few years, build equity, and when you’re ready to move into a single-family home, you can keep the multifamily as an income-producing property. People who simply like the flexibility. Life changes. Maybe you’ll rent out a second unit now, and in the future use it for aging parents, college kids, or a home office. Owning a property with built-in options gives you more ways to adapt as your needs evolve. Making the Best Choice Starts With an Open Mind… And Some Advice Whether you thought owning a house at all was out of the question, or buying a single-family home has been your goal, it’s worth keeping multifamily properties on your radar. They’re not just for investors or people chasing rental income—they can be a practical solution for buyers who want to own now, manage costs, and maintain flexibility for the future. The key is exploring your options thoughtfully. Every property and every market is different. What makes sense for one buyer might not for another, and the “right” choice isn’t always obvious from a quick search or a headline. That’s where a local real estate agent can make a big difference. An experienced agent can help you assess your personal situation, run the numbers on different properties, and identify which type of home aligns with your goals and lifestyle. They can also point out opportunities you might not have considered—like duplexes or triplexes in neighborhoods you already like, or properties with flexible layouts that can accommodate extended family or generate rental income. Thinking broadly and consulting an agent early on can turn what feels like a daunting decision into a clear, practical plan. Instead of limiting yourself to single-family homes, exploring multifamily options could reveal a path to homeownership you didn’t realize was available. The Takeaway: Recent data suggests that buying a single-family home will help you build equity faster than you would if you bought a multifamily. However, choosing between the two isn’t just about which one builds equity faster. It’s about what makes the most sense for your personal situation, your family’s needs, and your path to homeownership. For many buyers, multifamily properties can offer a practical, flexible, and even more attainable way to own a home today—while also creating opportunities for rental income, long-term investment, and adaptable living arrangements. The key is keeping an open mind and exploring your options. A local real estate agent can help you navigate the possibilities, run the numbers, and identify the right property for your goals.