Why a 50-Year Mortgage Won’t Save Us
Jordan Adair of LPT Realty contribured to this blog
If you’ve been watching the Sandpoint housing market over the last few years, you’ve probably felt it too. Buying a home just feels harder than it should. Prices rose fast, competition was fierce, and even now that things feel calmer, affordability hasn’t returned.
Every week I hear the same thing from buyers:
"Ben, I can afford the monthly payment... I just can’t afford the house."
And honestly, that is the heart of the entire problem.
Before we talk about the government’s proposed solutions, we need to look back at how we got here. Because this affordability crisis didn’t show up overnight.
How We Got Here: The COVID Price Surge That Never Reversed
Before COVID hit, Bonner County’s housing market was steady and predictable. Home prices were increasing, but reasonably. Nothing dramatic. Nothing alarming. Just normal, healthy growth.
Then June 2020 arrived.
That month, the median sales price for a single-family home in Bonner County was $320,000. Within weeks, demand surged. People were leaving big cities, working remotely, and searching for space, nature, and a different lifestyle. Sandpoint checked every box.
For nearly two years straight, prices climbed quickly.
By June 2022, we hit the peak of the COVID market.
But here is what didn’t happen. Prices didn’t fall back down.
Yes, waterfront homes corrected. But the overall market flattened and stayed elevated.
Fast-forward to November 2025 and the median sales price is $540,000.
That is a $220,000 increase since June 2020, which is a 68.75 percent jump in only five years. And none of the things that should accompany that kind of price growth, like income increases, zoning flexibility, or new construction, actually happened.
That is how you get an affordability crisis that does not self-correct.
The 50-Year Mortgage: Sounds Helpful... Until You Look Closer
One proposed fix is the 50-year mortgage. The idea is simple. Stretch the loan out longer to make the monthly payment feel more affordable.
But here is the part nobody puts in the headline:
For the first 20 years, almost your entire payment goes toward interest, not principal.
Imagine living in your home for two decades, making every payment, and barely reducing your loan balance. That is the reality of a 50-year amortization.
Is it slightly better than renting?
Maybe. But not by much.
And it gets worse.
A 50-year mortgage will raise home prices.
We have already seen how this plays out with college tuition.
Make borrowing easier.
More people borrow.
Demand spikes.
Supply stays the same.
Prices rise.
Housing behaves the same way.
If buyers can borrow more, sellers raise prices. Simple economics.
A 50-year mortgage does not solve affordability. It just extends debt longer.
First-Time Buyer Discount Rates: Helpful, But Not the Solution
Another idea being discussed is a lower interest rate for first-time buyers or certain income brackets. This absolutely helps some families.
But it is still a demand-side solution.
When demand increases without supply increasing with it, prices rise.
We have seen this across all kinds of industries, and housing is no exception.
Portable Mortgages: Interesting Idea, Wrong Problem
Another proposed idea is the portable mortgage. The concept is to allow homeowners to transfer their current mortgage rate to their next property.
It is an attractive idea for anyone locked into a 2 to 3 percent rate.
But here is the truth if the United States tried it:
1. It will not lower home prices.
Portable mortgages do not change land costs or the number of homes available.
2. It helps existing homeowners move, but does not help new buyers get in.
This does help the supply side a little by freeing up some homeowners who feel stuck. But it does not make homes more affordable for first-time buyers.
3. It creates major logistical issues.
U.S. mortgages exist inside mortgage-backed securities tied to specific homes. Moving the mortgage without moving the bond creates massive complications.
Portable mortgages might help mobility, but they do nothing for actual affordability.
So What About Helping People Move?
We Already Have That: Bridge Loans
After talking about portable mortgages, a lot of people naturally ask, "Doesn’t this just help people move without losing their rate?"
Yes. But we already have a tool for that.
Bridge loans.
Bridge loans allow homeowners to tap into their equity, buy their next home, and then sell their current home without rushing.
Portable mortgages try to solve a problem that bridge loans have already handled for decades.
And they still do not address the real challenge: affordability.
The Real Issue in Sandpoint: We Simply Do Not Have Enough Homes
This is the part almost no national article talks about, but every North Idaho local sees it.
Our affordability problem is a supply problem.
Bonner County has two realistic paths forward:
1. Build Up
We need more duplexes, fourplexes, townhomes, and small multifamily buildings.
This requires zoning changes.
2. Build Out
We have many 5, 10, and 20 acre parcels that could support new neighborhoods.
But restrictive subdivision rules make that extremely difficult and expensive.
Until zoning, regulation, and buildable inventory change, no mortgage product will improve affordability in Bonner County.
Where Buyers and Sellers Go From Here
In a high-priced, tight-inventory market, strategy matters more than ever.
If you are buying:
You need clarity, strong representation, and a plan.
If you are selling:
You need to understand your buyer pool and present your home in a way that overcomes affordability challenges.
This is not a "list it and hope" market.
It is a strategy market.
Final Thoughts
Sandpoint is a special place, and people want to live here. That demand is not going away. But the affordability challenges we face will not be solved by stretching mortgages, tweaking rates, or inventing new loan products. The real solution is building more homes and creating more opportunities for people to live, work, and put down roots here.
Until supply opens up, navigating this market requires a plan, a strategy, and someone who understands how to move within a high-demand, low-inventory environment.
If you want to talk through your situation and make sense of your options, I am here to help.
Helpful Resources
Questions to Ask When Buying a Home in Sandpoint
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