50 Year Mortgage

[djd09]

...a new deal

 

[Dale Floyd]

Why stop at 50 years? Why not 40 year loan. More options, better.
Problem is buying a $5 million bigger home will have property tax at about $60,000, increase in maintenance, insurance & utilities.
I hate to pay more taxes to the government.
If I could deduct those home costs, that would be good.

If you paid $24,000 in mortgage interest last year and deducted that from your taxable income at a 28% tax rate, you'd save a whopping $6,720 in taxes. I don't think it's better to pay $24,000 in mortgage interest to banks than to pay $6,720 in federal income taxes to the IRS. lol

Why stop at 50 years indeed? If 50 is better, then what about 60 or 70 years? Perhaps we need to introduce the 100 year mortgage loan!!!!

 

[Fernando]

If you paid $24,000 in mortgage interest last year and deducted that from your taxable income at a 28% tax rate, you'd save a whopping $6,720 in taxes. I don't think it's better to pay $24,000 in mortgage interest to banks than to pay $6,720 in federal income taxes to the IRS. lol

If itemize $60,000 in mortgage interest at 35% tax rate, save $10,500 (taking married standard deduction at $30,000). Not enough savings for me to buy more expensive home.

For mortgages taken after December 15, 2017, interest is deductible only on the first $750,000 of debt (same as federal).

However, unlike federal taxes, California does not cap state and local tax (SALT) deductions, so you may benefit even more by itemizing if you pay high property taxes.

Tax System	Deduction Amount	Marginal Rate	Estimated Savings
Federal	$60,000	35%	$21,000
California	$60,000	9.3%	$5,580
Total	—	—	$26,580

1. Federal Tax Impact (2025)​

• Standard Deduction: $31,500 for married filing jointly
• Mortgage Interest Deduction: $60,000
• Taxable Income Reduction: $60,000 – $31,500 = $28,500
• Marginal Tax Rate: 35%
• Federal Tax Savings:

28,500×0.35=$9,975

2. California State Tax Impact (2025)​

• Standard Deduction: $11,080 for married filing jointly
• Taxable Income Reduction: $60,000 – $11,080 = $48,920
• Marginal Tax Rate: ~9.3% (for income between $132,590 and $812,728)
• State Tax Savings:

48,920×0.093=$4,552

Total Estimated Tax Savings:​

$9,975 (Federal)+$4,552 (California)=$14,527

Why stop at 50 years indeed? If 50 is better, then what about 60 or 70 years? Perhaps we need to introduce the 100 year mortgage loan!!!!

Lower mortgage payments. And when young people earn more money, they can pay down their principal quicker.

 

[RSW]

Weren't they doing 50 year mortgages in California 15 + years ago?

 

[shrubberyvaluation]

If you paid $24,000 in mortgage interest last year and deducted that from your taxable income at a 28% tax rate, you'd save a whopping $6,720 in taxes. I don't think it's better to pay $24,000 in mortgage interest to banks than to pay $6,720 in federal income taxes to the IRS. lol

Why stop at 50 years indeed? If 50 is better, then what about 60 or 70 years? Perhaps we need to introduce the 100 year mortgage loan!!!!

Lifespan of adults should kind of be a factor also...and working years.

 

[Fernando]

Lifespan of adults should kind of be a factor also...and working years.

Yeah, 80 year old borrower should not get 30 year loans.

 

[Digger88]

I just heard about this today and as far as I can tell it's a possibility. What if the loan is structured like an FHA or Trump loan (lol) where the rate is a lot lower so the long term debt repayment is more similar to 30 year loans but allows for younger people to buy a home

we'll see I guess if this gains traction

 

[Dale Floyd]

I just heard about this today and as far as I can tell it's a possibility. What if the loan is structured like an FHA or Trump loan (lol) where the rate is a lot lower so the long term debt repayment is more similar to 30 year loans but allows for younger people to buy a home

we'll see I guess if this gains traction

I hope not. There is no funding mechanism in place to secure a rate for that long, so it would take something like an insurance, guarantee, or would have to be adjustable. It’s an insane proposal and surely they’ll toss it in the garbage.

 

[Dale Floyd]

If itemize $60,000 in mortgage interest at 35% tax rate, save $10,500 (taking married standard deduction at $30,000). Not enough savings for me to buy more expensive home.

For mortgages taken after December 15, 2017, interest is deductible only on the first $750,000 of debt (same as federal).

However, unlike federal taxes, California does not cap state and local tax (SALT) deductions, so you may benefit even more by itemizing if you pay high property taxes.

Tax System	Deduction Amount	Marginal Rate	Estimated Savings
Federal	$60,000	35%	$21,000
California	$60,000	9.3%	$5,580
Total	—	—	$26,580

1. Federal Tax Impact (2025)​

• Standard Deduction: $31,500 for married filing jointly
• Mortgage Interest Deduction: $60,000
• Taxable Income Reduction: $60,000 – $31,500 = $28,500
• Marginal Tax Rate: 35%
• Federal Tax Savings:

28,500×0.35=$9,975

2. California State Tax Impact (2025)​

• Standard Deduction: $11,080 for married filing jointly
• Taxable Income Reduction: $60,000 – $11,080 = $48,920
• Marginal Tax Rate: ~9.3% (for income between $132,590 and $812,728)
• State Tax Savings:

48,920×0.093=$4,552

Total Estimated Tax Savings:​

$9,975 (Federal)+$4,552 (California)=$14,527


Lower mortgage payments. And when young people earn more money, they can pay down their principal quicker.

As I said - There are NO savings when you spend more in mortgage interest just to lower taxes by a much smaller amount. The tax differences are helpful if people must borrow, but there’s no “savings” to do so financially if it’s unnecessary. Doesn’t matter the amount.

An accountant once told one of my clients that he needed to just borrow money to take advantage of tax savings. It was a good thing he sought out another opinion. The math wasn’t logical.

You live in a fantasy world if you believe a much longer mortgage will save anybody money.

 

[ucbruin]

I just heard about this today and as far as I can tell it's a possibility. What if the loan is structured like an FHA or Trump loan (lol) where the rate is a lot lower so the long term debt repayment is more similar to 30 year loans but allows for younger people to buy a home

we'll see I guess if this gains traction

If it's a Trump loan....
You can default....