At the extreme end of the fixed rate mortgage term is the fifty-year fixed rate mortgage, a relatively new mortgage option for the homebuyer. Much like the forty-year fixed rate mortgage, an individual is able to qualify for more home than they could otherwise be able to qualify for by extending his mortgage payments over a longer term. In other words, the balance repayment is at a slower rate therefore the equity in the home is also built slightly slower as well. It is said that buying a home with a fifty-year fixed rate mortgage is more like leasing the home than buying the home as the majority of payments will be applied more to the interest than to the principal. Therefore, a person looking to his home as an investment should probably not consider the fifty-year as an option. Please use our mortgage calculator to compare the different mortgage options available.
