Travis Makes Money Make Money Disappear with 50 Year Mortgages
Nov 19, 2025
The discussion kicks off with Donald Trump’s bold idea of 50-year mortgages, stirring up a mix of skepticism and intrigue. Travis questions bank incentives and the potential for increased interest costs. They explore whether these long loans could help real estate investors, while advising caution on prepayment strategies. Monthly savings seem modest, and the team argues these won't fix housing affordability issues. Plus, they debate the implications for home prices and the comparative value of renting versus owning in the long run.
AI Snips
Chapters
Books
Transcript
Episode notes
Longer Terms Mostly Boost Bank Profits
- 50-year mortgages dramatically increase total interest paid even if monthly savings look small.
- Banks introduce longer terms to earn more interest, not to help borrowers.
Amortization Shape Changes The Math
- Amortization structure matters: interest is often front-loaded, affecting savings from longer terms.
- Paying extra may not fully fix higher early interest on stretched loans.
Pay The Equivalent Shorter Loan Payment
- If forced into a 50-year loan, calculate and pay the equivalent 30-year payment to avoid extra interest.
- Make consistent extra payments to replicate a shorter amortization schedule.
