Should First-Time Buyers in North Carolina Consider a 50-Year Mortgage?
The housing affordability crisis has hit North Carolina particularly hard, especially in rapidly growing areas like Raleigh, Cary, and Apex. With home prices steadily rising and interest rates hovering above 6 percent for more than three years, many first-time buyers are asking whether unconventional mortgage options can help them finally achieve the American Dream of homeownership.
One option generating buzz is the proposed 50-year fixed-rate mortgage. If you haven’t seen our complete breakdown of this new proposal, read our in-depth analysis here: 50-Year Mortgage: A Comprehensive Analysis.
But should North Carolina residents consider this extended-term loan? Let's break down the pros and cons and how it could impact your ability to qualify for a mortgage.
What is a 50-Year Mortgage?
Simply put, it’s a mortgage amortized over 600 months instead of the traditional 360. The idea is to lower monthly payments, thereby helping more buyers enter the housing market. According to Jason Iacovelli, Sr. Loan Officer, the proposal claims to reduce monthly payments by approximately 4.8 percent—just over $120 a month on a $400,000 mortgage.
How It Could Help
For many first-time buyers, especially those early in their careers or burdened with student loans, lowering monthly payments can be the difference between approval and denial. As explained in the North Carolina Mortgage Guide, lenders review your debt-to-income ratio (DTI) closely. A small reduction in your payment could drop your DTI below qualifying thresholds.
Jason Iacovelli often sees young buyers who are close to qualifying, and even modest reductions in payment can open the door. “If you’re borderline, every dollar counts. A 50-year option could help you get through underwriting when a 30-year term won’t,” says Jason, who has over 25 years of experience in mortgage lending across North Carolina.
Use our Pre-Qualification Tools to see where you stand in today’s rate environment.
The Hidden Costs
While a lower monthly payment may sound attractive, the cost over time is staggering. As our blog details, you could pay more than $533,000 in extra interest over the life of the loan. Jason warns: “You have to be absolutely clear about what you’re trading off. You're trading a little payment relief for a lifetime of higher costs.”
The Mortgage FAQs section of our site explains why understanding your loan options is essential. Even if you qualify for a 50-year mortgage, it may not be the best long-term financial decision.
Alternatives to Consider
If you’re struggling to qualify, there are other options to look into. These include FHA loans, USDA loans for rural areas, and VA loans for veterans. Visit our Understanding Your Loan Options page for a breakdown of what's available in North Carolina.
Talk With a Local Mortgage Expert
Before you make any decisions, schedule a consultation with a local expert like Jason Iacovelli. Located in the Triangle area, Jason and his team at reAlpha Mortgage work with buyers throughout Wake County and surrounding communities.
📞 You can reach him at 919-525-3933 or via email at jason.iacovelli@realphamortgage.com to discuss whether a 50-year mortgage might make sense for your situation.
Equal Housing Opportunity. All loans subject to credit approval and property appraisal. This article is for educational purposes only. Rates, terms, and programs are subject to change.
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