Afford Anything Should You Ever Get a 50 Year Mortgage? — with Dr. Karsten Jeske
Dec 10, 2025
In this engaging discussion, Dr. Karsten Jeske, a former Federal Reserve economist and finance blogger, dives into the controversial topic of 50-year mortgages. He highlights when these loans might benefit sophisticated investors looking to manage cash flow instead of traditional homeowners. The conversation also reveals how ultra-long mortgages could inflate home prices, impacting future buyers and generational wealth. Delve into the complex math of equity growth and the risks involved, providing listeners insights on long-term financial strategies.
AI Snips
Chapters
Transcript
Episode notes
Model Your Move Timeline Before Choosing Term
- Owner-occupants who move every 7–10 years will build less mortgage-paydown equity with a 50-year loan and may struggle to fund future down payments.
- Use projected resale timing to model equity outcomes before choosing a longer term.
Keep 50-Year Loans For Sophisticated Use
- If you can afford a 30-year loan, consider keeping the 50-year as an occasional option for sophisticated investors who will invest payment savings.
- Avoid using 50-year loans to expand buyer pool for marginal, unqualified borrowers.
Real Equity Gap Is Smaller After Inflation
- A 30-year mortgage builds substantially more nominal equity early, but inflation and modest home appreciation narrow the real difference versus a 50-year mortgage.
- Karsten Jeske shows that investing payment savings can offset slower amortization and materially change outcomes.