Choosing a loan term with the whole horizon in view
Entry 4: beyond thirty
Ledger note
Terms longer than 30 years lower the required payment a little further but slow equity and raise total interest substantially. Under the federal ability-to-repay rules, a qualified mortgage cannot have a term longer than 30 years, so longer terms are offered only as non-qualified loans or through loan modifications.
Last reviewed against the primary sources listed below.
What changes with a longer term
- Required payment: lower, but by less than people expect.
- Equity: much slower for many years.
- Total interest: much higher.
Why they are rare
Federal qualified mortgage rules cap qualified terms at 30 years. Loans longer than that are outside that category, which can mean different protections and pricing. Modification programs sometimes extend terms to help owners in hardship.
Before choosing one
Compare the Loan Estimate for a longer term with a 30-year estimate, especially the In 5 Years figures.
Term questions readers send
Is there a 50-year mortgage?
Terms longer than 30 years are uncommon because qualified mortgages are capped at 30 years. Some non-qualified products and loan modifications use longer terms.
How long can you get a mortgage for?
Most common terms are 10 to 30 years. Longer terms are rare and fall outside qualified mortgage rules.