Comment by seanmcdirmid

It might work if inflation is high and you make extra payments at the beginning of the loan. So you have 50 years to pay it off doesn’t mean you have to make minimum payments, you could get the principle down at the beginning and then get your repayments redone later in the loan to have something manageable. Inflation and appreciation would eat away at the loans value, you would be paying off a loan from 30 years ago with today’s money, your property taxes would likely be more than your house payment by then.

However, USA’s fixed interest rates, and your ability to refinance to a lower rate, aren’t really sustainable in a 59 year loan (they aren’t sustainable for 30 year loans). A lot of people are going to be locked into the same house for generations because they got a good rate 30-40 years ago. Also, it doesn’t really increase supply, we are going to quickly degrade into a European housing market of interest only loans and renting as a normal way of life.