Mortgage Terms Explained: The Pros & Cons of 10-, 15-, 20-, 30-, 40- & 50-Year Loans

When buyers in the La Crosse and Coulee Region begin planning their home purchase, one of the most important decisions they face is choosing the length of their mortgage term. While the monthly payment matters, the true long-term cost can look very different depending on whether your loan lasts 10 years… or 50 years.

As an experienced La Crosse Area Realtor, Julie Delap routinely helps buyers compare these terms, understand the financial trade-offs, and avoid mortgage products that may cost far more than expected. Below is a clear breakdown of the most common mortgage lengths—and why the longest options often come with hidden downsides.

How Mortgage Term Impacts Cost

Shorter loans offer high payments but enormous interest savings. Longer loans lower the monthly payment—but drastically increase the total price you pay for the home.

To illustrate this, here is a comparison using a $300,000 loan at a sample 6.5% interest rate across multiple mortgage terms.

Monthly Payments & Total Interest Comparison

(Based on a $300,000 loan at 6.5% interest)

What These Numbers Really Mean

While a 40- or 50-year mortgage may look appealing on paper due to the lower monthly payment, the long-term cost is staggering:

• A 40-year loan adds over $543,000 in interest — almost doubling the home’s price.

• A 50-year loan adds over $714,000 in interest — paying more than double the purchase price just in interest.

• Even the classic 30-year mortgage results in over $382,000 in interest.

This is exactly why Julie encourages buyers to look beyond the monthly payment. Lower payments now can lead to massive financial drag later—especially if you want to build equity, move again, refinance, or retire comfortably.

Term-by-Term Breakdown

Below is a clearer look at each mortgage term and its pros and cons.

10-Year Mortgage

Pros

• Fastest equity growth.

• Lowest total interest paid.

• Often the lowest interest rate of all terms.

Cons

• Very high monthly payment.

• Tougher to qualify due to payment size.

• Less room for other financial goals.

Best for: High-income earners, downsizers, or buyers wanting a rapid payoff.

15-Year Mortgage

Pros

• Significant interest savings vs. a 30-year loan.

• Faster payoff without the extreme payment of a 10-year.

• Builds equity quickly.

Cons

• Higher payment than 20- or 30-year terms.

• May limit how much home you can afford.

Best for: Buyers wanting long-term savings with manageable payments.

20-Year Mortgage

Pros

• A balanced middle-ground term.

• Lower interest than 30-year loans.

• Reasonable payments vs. 15-year options.

Cons

• Higher overall interest cost than 15-year mortgages.

• Not all lenders offer this term.

Best for: Buyers who want affordability and solid long-term savings.

30-Year Mortgage

Pros

• Lowest widely available monthly payment.

• Flexible for budgeting.

• Compatible with most loan programs.

Cons

• Much higher total interest.

• Slower equity growth.

Best for: Most buyers, especially first-time homeowners.

40-Year Mortgage

Pros

• Even lower monthly payment than a 30-year loan.

• Can help buyers qualify for a higher-priced home.

Cons

• Interest adds up dramatically — over $543,000 in the example above.

• Often comes with higher interest rates.

• Extremely slow equity growth.

• Some 40-year products include interest-only periods.

Best for: Buyers needing short-term payment relief, but should be approached with caution.

50-Year Mortgage

Pros

• Smallest monthly payment option.

Cons — and They Are Significant

• Total interest is enormous — over $714,000 on a $300,000 loan.

• Highest long-term cost of any mortgage.

• Extremely slow equity accumulation.

• Higher risk of becoming underwater if market growth stalls.

• Many buyers will still be paying the loan into retirement.

• Financial planners strongly warn against these products.

Best for: Very limited scenarios. Most households should avoid this option entirely.

Which Mortgage Term Should You Choose?

The best choices for most people in the Coulee Region are:

• 15-Year Mortgage: Best balance of savings and speed.

• 30-Year Mortgage: Best balance of affordability and flexibility.

40- and 50-year mortgages should be carefully evaluated because the long-term financial burden outweighs the short-term ease for most buyers.

How Julie Helps You Choose Wisely

With years of local experience and a deep understanding of La Crosse–area lending trends, Julie Delap helps buyers compare real numbers, understand interest differences, and choose the loan structure that protects their long-term financial stability.

Whether you're a first-time homebuyer or planning your next move, Julie makes sure you’re fully informed—not just about the monthly payment, but the total cost over time.