Is the 50 Year Mortgage A Good Idea?

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Recent proposals that lenders be permitted to offer 50 year mortgages to help make housing more affordable to homebuyers has sparked intense debate.  Never ones to shy away from wandering into the crossfire, Adam and Jeff consider the pros and cons of having an exciting new loan product that can encumber your property for your life, your childrens' lives and, possibly, much of your grandchildrens' lives.  Jeff admits that he is concerned about the fact that the monthly payment on a $500,000 loan at 6%, for example, only drops by about $300 a month if the borrower chooses a 50 year mortgage over a 30 year mortgage.  Unfortunately, the borrower then gets to pay that reduced amount for an additional 20 years--long past the time when he or she will even be able to remember where he or she lives or anything else for that matter.  Adam thinks longer mortgages are nothing more than financial gimmicks that are offered by politicians anxious to show they are doing something without really doing anything at all to lower housing costs.  Jeff suggests lavish tents could be a possible low-cost housing substitute.  Adam and Jeff believe that the solutions are much more challenging because policymakers have to deal with the high costs of land, labor and materials as well as a regulatory environment that often discourages higher density building.