The conversation around housing affordability has resurfaced with a new idea on the table: 50-year mortgages. While it may sound like a solution, stretching a loan this far often creates long-term financial strain rather than genuine affordability. For buyers and sellers throughout North County San Diego, it is worth exploring what actually could make a meaningful difference in today’s market.

Below, we break down why 50-year mortgages fall short and share alternative strategies that could help more people move, buy, and sell comfortably.

Why a 50-Year Mortgage Isn’t the Answer

At first glance, extending a mortgage term to 50 years seems like a way to lower monthly payments. In reality, it dramatically increases the total interest paid.

Here’s an example using a $1,000,000 home with a 20 percent down payment at a 6 percent interest rate.

• 30-year mortgage: Monthly payment roughly $4,800
• 50-year mortgage: Monthly payment roughly $4,380
• Difference: Only about $420 per month

Yet over the life of the loan, the total interest cost jumps significantly.

• Total interest on 30-year loan: About $865,000
• Total interest on 50-year loan: About $1.4 million

A small monthly savings comes at the price of over half a million dollars in additional interest. For families in communities like Encinitas, Carlsbad, and Solana Beach, this math simply doesn’t add up.

What Would Actually Help the Housing Market Move Again?

1. Raising the Capital Gains Exemption

The federal capital gains exclusion for selling a primary residence has not been updated since the 1990s. With home values in North County San Diego rising dramatically over the past two decades, many long-time owners hesitate to sell because of the large tax hit.

Doubling the exemption would encourage more homeowners to list, which increases inventory and creates opportunities for buyers.

2. Expanding Mortgage Interest Deductions

Increasing the mortgage interest deduction cap could make homeownership more affordable, especially in higher-cost markets like coastal San Diego. This change helps buyers handle monthly payments and reduces the net cost of borrowing.

3. Encouraging Assumable or Transferable Mortgages

Assumable mortgages already exist, but they’re rare and often limited to FHA or VA loans. Expanding this option, or introducing true transferable mortgages for conventional loans, would allow buyers to take over a seller’s existing low rate.

In a market where many homeowners hold sub-4 percent rates, this could be a game changer. It opens doors for buyers who can’t afford today’s rates and empowers sellers to market their homes more competitively.

4. Incentivizing Downsizing

Many empty-nesters in North County San Diego are staying put because the cost to move is too high. Programs that reduce property tax penalties or lower transaction costs for seniors could free up a wave of inventory.

Final Takeaway

A healthier, more active housing market won’t come from stretching loans over half a century. Real solutions lie in tax reform, creative financing tools, and policy updates that reflect the economic reality of places like North County San Diego.

Whether you’re thinking about listing or exploring buying opportunities, knowing how these changes affect you can help you make confident decisions.

If you’d like to talk about your options or the current market in Encinitas, Carlsbad, Del Mar, or surrounding communities, we’re here to help.