50 Year Fixed Mortgage Calculator

What is a 50 Year Fixed Mortgage?

A 50 year fixed mortgage is an extended home loan with a repayment term of 50 years and an interest rate that remains constant throughout the life of the loan. This type of mortgage offers significantly lower monthly payments compared to traditional 30-year mortgages, but results in substantially more total interest paid over the life of the loan.

Formula for Monthly Mortgage Payment

The formula for calculating the monthly principal and interest payment of a 50 year fixed mortgage is:

\[P = L[\frac{c(1+c)^n}{(1+c)^n-1}]\]

Where:

• P = Monthly Principal & Interest Payment
• L = Loan Amount
• c = Monthly Interest Rate (Annual Rate / 12)
• n = Total Number of Months (600 for a 50 year mortgage)

Calculation Steps

1. Convert the annual interest rate to a monthly rate by dividing by 12.
2. Use the formula above to calculate the monthly principal and interest payment.
3. Add monthly property tax and insurance (if applicable) to get the total monthly payment.

Example

Let's consider a 50 year fixed mortgage with the following details:

• Loan Amount: $400,000
• Annual Interest Rate: 3.5%
• Annual Property Tax: $4,800
• Annual Home Insurance: $1,500

Calculation:

1. Monthly interest rate: 3.5% / 12 = 0.2917%
2. Monthly principal & interest: $1,324.67
3. Monthly property tax: $4,800 / 12 = $400
4. Monthly home insurance: $1,500 / 12 = $125
5. Total monthly payment: $1,324.67 + $400 + $125 = $1,849.67