Most people I know would never use the 50-yr mortgage, but pass along to the more savvy investor (or Bitcoiner who is the most savvy and low time-preference of them all).
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Hereβs what the math looks like on a $400,000 mortgage:
Your debt gets inflated away:
After 50 years at 6.5% debasement: real value drops from $400,000 to just $17,162 (96% reduction).
Your investments compound:
Investing $130/month at 10% annual returns for 50 years creates $2,255,462
Net result: $2.24 million in wealth.
...
But this only works if you actually invest the difference. If you spend that $130/month on dinners and vacations, youβre just getting crushed by interest payments while building 6% equity.
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π‘The 50-Year Mortgage: Financial Innovation or Expensive Trap?
Issue 192