As home prices continue to rise across North County San Diego and interest rates stay elevated, some policymakers have proposed a 50-year mortgage as a way to increase affordability. At first glance, stretching payments over a longer term may seem helpful, but the numbers show that it does not solve the affordability problem and may actually create new financial risks for buyers.

A more realistic path to improving affordability and restoring healthy market activity involves policy changes that improve mobility, unlock inventory, and reduce true borrowing costs for buyers and sellers.

Let’s break it down.

Why a 50-Year Mortgage Does Not Make Financial Sense

Using a $1,000,000 home price at a 6 percent interest rate, which is common in areas like Carmel Valley, Encinitas, Carlsbad, and Del Mar:

30-Year Mortgage

• Monthly payment (principal and interest): about $5,995
• Total interest paid: about $1.16 million

50-Year Mortgage

• Monthly payment (principal and interest): about $5,163
• Total interest paid: about $2.10 million

What the numbers reveal

The monthly payment drops by only about $832, yet the buyer pays about $940,000 in additional interest over the life of the loan.

That is almost an entire second home in North County San Diego.

The buyer also builds equity much more slowly and stays in a high-debt position for decades. For most buyers, this is not a path toward financial stability.

Real Solutions That Would Strengthen the Housing Market

Below are the practical and impactful changes that would create real affordability and help both buyers and sellers throughout North County San Diego.

1. Modernize the Capital Gains Exemption

Today’s capital gains exemption was set in 1997. Home values in places like Encinitas, Del Mar, Solana Beach, and Carmel Valley have increased dramatically since then.

Current exemption amounts:

• $250,000 for individuals
• $500,000 for married couples

These numbers no longer reflect the real market. As a result, many long-term homeowners choose not to sell because their tax bill would be too high.

Increasing the exemption could:

• Encourage older homeowners to downsize
• Release more single-family homes into the market
• Increase available inventory
• Reduce pressure on home prices

This is one of the most meaningful steps lawmakers could take.

2. Expand Mortgage Interest Deductions

A stronger mortgage interest deduction would help offset the burden of high rates and support buyers entering the market at today’s price points.

Benefits include:

• Lower effective monthly costs
• Greater affordability for first-time buyers
• More movement among existing homeowners
• More purchasing power in high-cost counties like San Diego

This approach directly helps buyers without locking them into multi-decade debt.

3. Broaden Access to Assumable Mortgages

Assumable mortgages allow buyers to take over the seller’s existing mortgage, including the lower interest rate, but currently only apply to certain loan types.

Expanding assumable loans to include conventional financing could dramatically change the market.

Benefits include:

• Access to low existing interest rates (often 3 to 4 percent)
• Increased demand for homes with assumable loans
• More movement from homeowners who feel stuck with their current rate
• More balanced inventory across the region

This could be one of the quickest and most effective affordability improvements.

4. Support the Development of Transferrable Mortgages

A transferrable mortgage stays with the borrower instead of the property, allowing homeowners to keep their existing low rate when moving.

This idea is gaining attention because it would:

• Help homeowners in North County San Diego move more freely
• Encourage downsizing or upsizing
• Bring more homes onto the market
• Provide long-term financial stability for buyers

It is a modern solution to a modern housing market.

The Bottom Line

A 50-year mortgage does not solve affordability in North County San Diego. It simply lowers monthly payments a small amount while costing buyers hundreds of thousands of dollars in additional interest.

The solutions that truly matter include:

• Updating outdated capital gains exemptions
• Expanding mortgage interest deductions
• Allowing more widespread assumable mortgages
• Supporting transferrable mortgage options

These measures promote mobility, relieve pressure on inventory, and create a healthier and more accessible housing market for both buyers and sellers.

If you would like help evaluating your position in today’s market or weighing the best strategy for buying or selling, we are here to help.