President Donald Trump’s proposal for 50-year mortgages offers lower monthly payments, but borrowers would pay significantly more interest in the long run and build equity at a slower pace. In some cities, the extra interest could amount to nearly $1 million.

Comparing 30-year vs. 50-year mortgages in real estate markets revealed a stark truth: the interest difference is staggering. Median listing price in one market is $954,500, with a $607 monthly savings on a 50-year mortgage but $904,798 more in total interest.

San Francisco buyers may see reduced monthly payments with a 50-year mortgage, but the risks of price and interest are high. Economist Joel Berner warns that the extra $904,798 in total interest can lead to increased competition and higher home prices, potentially negating any monthly savings.

In areas with lower median listing prices like $458,020, a 50-year mortgage could offer monthly savings of $292. However, the extra total interest of $434,170 should be carefully considered to avoid long-term financial implications.

The potential savings of a 50-year mortgage in lower-cost areas like those with a median listing price of $239,570 could be crucial for buyers. Monthly savings of $153 may seem appealing, but the additional total interest of $227,095 over 50 years is a significant cost to bear.

Read more at Yahoo Finance: Nearly $1M Extra Interest in One City