This new loan may be a good alternative to an adjustable rate mortgage since you get a low payment without the risk of your payments going higher. Although it is not available with all lenders yet, it is gaining popularity and should be an option with most lenders in the near future.

Another great alternative to the 50 year mortgage is the 30 year interest only, both have similar monthly payments

While your payments are going to be lower with a 50 year mortgage when compared with a 30 or 40 year amortization, you might be surprised at how small the difference is per month. For example a $200,000 loan at a 7.5% interest rate, your payments on a 50 year term will only be $118 lower per month on a 30 year mortgage.

So if you're goal is to pay off the home, you're probably better off in a loan amortized over 30 years. If your goal is to have a lower payment and still pay off some principle a 50 year loan is for you.

The benefit of a 50 year amortized loan is not only the lower payments on a monthly basis but will include principle payments as well.