What North Sound Buyers Should Know

Helping North Sound buyers make confident real estate decisions.

Understanding the 50-Year Mortgage in Washington State

Affordability continues to be one of the biggest hurdles for homebuyers in Washington State, especially throughout the North Sound region. As prices rise and interest rates hold steady, many buyers are hearing about a new financing option: the 50-year mortgage.

Sometimes called a half-century loan, this mortgage stretches repayment over 600 months, lowering monthly payments. While it can create some breathing room for buyers, it also comes with long-term financial implications that Banneret Home Solutions believes every buyer should understand.

Why North Sound Buyers Are Asking About 50-Year Mortgages

The areas we serve — Skagit County, Island County, Snohomish County, and surrounding North Sound communities — continue to experience:

• Higher-than-average home prices
• Limited inventory in areas like Anacortes, Mount Vernon, and Oak Harbor
• Elevated interest rates compared to pre-2020 levels
• Strong demand driven by Seattle-area relocations and military transfers

Because monthly payment affordability is often the primary barrier, buyers are naturally curious about loan programs that reduce monthly costs, including longer-term mortgages.

Pros and Cons of a 50-Year Mortgage

Potential Benefits

• Lower monthly payments compared to a traditional 30-year mortgage
• May make higher-priced homes more accessible in competitive markets
• Helpful for first-time buyers struggling with Washington’s rising prices

Key Drawbacks

• Much slower equity growth over time
• Significantly more interest paid over the life of the loan
• The mortgage may extend into retirement years
• Less benefit for buyers who relocate or refinance within 5–10 years
• Less financial cushion if the market shifts or personal circumstances change

Washington State Payment Example

To better understand the trade-offs, here’s a simple example based on a typical North Sound purchase price:

• Home Price: $550,000
• Down Payment: 20%
• Loan Amount: ~$440,000

Estimated Monthly Payments:

• 30-Year Mortgage (~6.5%): approx. $2,773/month
• 50-Year Mortgage (~7.0%): approx. $2,635/month

Monthly Difference: about $138 less with a 50-year loan.

While that reduction can help with budgeting and qualifying, the trade-off is slower equity build-up and significantly more interest paid over time.

How 50-Year Mortgages Fit Into the North Sound Market

Skagit County

Communities such as Mount Vernon, Burlington, and Anacortes continue to experience steady competition and strong demand. Slow equity growth in these areas can impact long-term wealth-building, especially for buyers who plan to move within a decade.

Island County

Island County’s communities, including Oak Harbor, Coupeville, and Freeland, attract military families, retirees, and remote workers. A 50-year mortgage may work for buyers who expect to stay long term, but short-term owners may see limited benefit from such slow amortization.

Regional Affordability Pressures

The North Sound faces unique financial challenges:

• Tight inventory
• Limited buildable land (especially on and around islands)
• In-migration from higher-cost counties
• Seasonal listing and demand fluctuations

All of this keeps monthly payments higher and creates demand for creative financing options, but not every option is right for every buyer.

Is a 50-Year Mortgage Right for You?

A 50-year mortgage might be a good fit if:

• You plan to live in the home for 20+ years
• You need a lower monthly payment to comfortably qualify
• You’re buying in higher-priced areas like Anacortes, Camano Island, or Oak Harbor

It may not be ideal if:

• You plan to move, upgrade, or downsize within 5–10 years
• You want to build equity quickly
• You’re nearing retirement or on a shorter financial timeline
• You qualify for better loan programs through Washington lenders or WSHFC

Alternatives Banneret Home Solutions Recommends

Before committing to a 50-year mortgage, Banneret Home Solutions encourages buyers to explore:

• Washington State Housing Finance Commission (WSHFC) Programs – including down payment assistance and first-time homebuyer programs
• Rate Buydowns (2/1 or 3/2/1) – to temporarily lower payments in the early years
• Adjustable Rate Mortgages (ARMs) – often useful for military families or buyers expecting to relocate
• 25-Year, 30-Year, and 40-Year Loans – which can offer some payment relief without extending the term to 50 years

Final Thoughts from Banneret Home Solutions

A 50-year mortgage is a band-aid, not a solution. It may help some Washington buyers manage monthly costs, but it also slows equity growth and increases long-term interest paid.

At Banneret Home Solutions, our mission is to help North Sound buyers make informed, confident decisions. Whether you're purchasing in Skagit County, Island County, or anywhere in the surrounding region, we’re here to guide you through your options with clarity and local expertise.