50-Year Mortgage Calculator
Compare 50-year vs 30-year mortgages with detailed financial analysis
Loan Details
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📊 Formulas & Definitions
Monthly Payment Formula
M = P × [r(1 + r)^n] / [(1 + r)^n – 1]
Where:
• M = Monthly payment
• P = Principal loan amount
• r = Monthly interest rate (annual rate / 12)
• n = Number of months (years × 12)
• M = Monthly payment
• P = Principal loan amount
• r = Monthly interest rate (annual rate / 12)
• n = Number of months (years × 12)
DTI (Debt-to-Income) Ratio
Required Income = (Monthly Payment × 12) / 0.28
The 28% rule is a standard lending guideline stating that your mortgage payment (including taxes, insurance, HOA, and PMI) should not exceed 28% of your gross monthly income. This helps determine the minimum income needed to qualify for the mortgage.
PMI (Private Mortgage Insurance)
Monthly PMI = (Loan Amount × PMI Rate / 100) / 12
PMI is required when the down payment is less than 20% of the home’s purchase price. It protects the lender against default and typically costs 0.5-1% of the loan amount annually.
Equity Calculation
Equity = Home Value – Remaining Loan Balance
Equity represents your ownership stake in the home. It increases as you pay down the principal and/or as the home appreciates in value. The remaining balance is calculated using an amortization schedule.
Total Interest Paid
Total Interest = (Monthly Payment × Number of Payments) – Principal
This represents the total cost of borrowing over the life of the loan. The longer the loan term, the more interest you’ll pay overall, even with lower monthly payments.
Break-Even Analysis
Break-Even Years = Extra Interest / Annual Payment Savings
This calculates how many years of lower monthly payments it would take to offset the additional interest paid on a 50-year mortgage compared to a 30-year mortgage. This helps evaluate the true cost of the extended loan term.
Amortization Formula
Remaining Balance = P × [(1 + r)^n – (1 + r)^p] / [(1 + r)^n – 1]
Where:
• P = Original principal
• r = Monthly interest rate
• n = Total number of payments
• p = Number of payments made
This formula calculates the remaining loan balance at any point during the loan term.
• P = Original principal
• r = Monthly interest rate
• n = Total number of payments
• p = Number of payments made
This formula calculates the remaining loan balance at any point during the loan term.
50 year Mortgage Calculator Features
Our comprehensive 50-year mortgage calculator helps you compare extended-term mortgages with traditional 30-year loans.
Calculate monthly payments, total interest costs, and equity building over time. While 50-year mortgages offer lower
monthly payments, they come with significantly higher total interest, often double that of 30-year loans. This
interactive tool shows your required income, PMI calculations, and provides visual charts comparing loan balances and
home equity accumulation. Perfect for first-time buyers exploring affordability options or anyone considering extended
mortgage terms. Make informed decisions by understanding the true long-term costs and wealth-building implications of
different mortgage lengths.
