On this week's "Inside Georgia Real Estate" on WSB Radio, broker and host Deborah Morton tackled a hot new idea floating through the mortgage world: 50-year home loans paired with looser credit rules. She also brought in home-warranty expert Taylor Rogowski to talk about protecting your budget when systems fail. The big question running through the hour: are these tools really helping Georgia families, or setting them up for trouble later?
Key Takeaways for Georgia Real Estate
• Proposals for 50-year mortgages and dropping minimum credit scores are aimed at affordability, but may cost buyers far more over time.
• On a sample $400,000 home, a 50-year loan might cut the payment by about $200 a month, yet nearly double the total paid.
• Slow equity build means many owners could have little to no equity if they sell in 5-7 years, especially if the market dips.
• New credit rules that count on-time rent payments may be a safer way to open the door to homeownership.
• Home warranties do not replace homeowners insurance; they only cover wear-and-tear on systems and appliances.
• COVID mortgage deferments, especially on FHA loans, may have been recorded as second mortgages and can block a future sale.
What's Behind The 50-Year Mortgage Buzz
Deborah explained that industry leaders have floated two big changes: allowing 50-year mortgages and removing the minimum credit score for conventional loans. Historically, borrowers under a 620 score were pushed toward FHA loans. These ideas are being discussed inside the industry, not yet rolled out on a wide scale.
The goal is simple: tackle the affordability crunch. But when she and her team ran the math on a $400,000 purchase at 6 percent, the results were sobering. A 50-year term trimmed the payment by roughly $200 a month, yet the amortization schedule showed buyers paying nearly twice as much over the life of the loan. As she put it, "It doesn't make sense to pay more for a house" just to chase a slightly lower monthly bill.
Equity, Risk And The "Predatory" Question
Most owners move every five to seven years. With a 50-year mortgage, those early payments are almost entirely interest, not principal. Five years in, a homeowner might assume they have healthy equity, only to find they have very little once a real-world sale is on the table.
Shelly Winter asked bluntly if this kind of product could be predatory. Deborah said it is at least fair to ask the question. The structure could especially benefit investors who only care about cash flow and are happy to trade a lower payment for more total interest. For families stretching to buy their first home, the odds are not stacked in their favor.
By contrast, one change Deborah does like is allowing tri-merge credit reports to count on-time rental history. For renters who have been paying faithfully every month, that can strengthen qualifying without doubling the cost of the loan.
How Home Warranties Fit Into The Picture
Guest Taylor Rogowski from First American Home Warranty drew a clear line between homeowners insurance and a warranty. Insurance covers disasters and damage. A home warranty is a renewable service contract that covers wear and tear on systems like plumbing, electrical, HVAC, water heaters and major appliances.
Warranties are not required by lenders, and not everyone needs one. Handy owners with strong cash reserves might be fine self-insuring. But with full HVAC replacements now often running $8,000 or more, Taylor sees a warranty as "catastrophic insurance" for families on a tight budget. Deborah often includes seller coverage when she lists a home so a surprise dishwasher or HVAC failure during the listing period does not blow up the seller's finances.
The key, they both stressed, is understanding what is and is not covered, which tier of coverage you bought, and how claims are actually handled.
Hidden Traps: Forbearance, Foreclosure And Non-Traditional Homes
Deborah also warned about quieter risks sitting in people's files. In one recent deal, a buyer was ready to close when the title search uncovered a surprise: the seller's COVID-era FHA deferment had been recorded as a second mortgage instead of simply tacking missed payments onto the end of the first loan. The sale proceeds could not pay off both liens, the buyer lost inspection and appraisal money, and the seller could not move.
Her advice was blunt: if you took a deferment during COVID, call your lender now and find out exactly how it was recorded.
Another caller in Rome facing foreclosure was approached by an investor offering to "help." Deborah reminded listeners that once a foreclosure notice hits public records, investors swarm. The mortgage company simply wants the debt repaid; some investors want the property at a discount. In those moments, she urged owners to get independent advice from a trusted local agent or attorney before signing anything.
And for listeners dreaming of specialty builds like a barndominium, Deborah flagged financing as a major factor. These structures can be appealing on acreage, but federal loan guidelines and secondary market rules limit which mortgages can be used, which in turn narrows the future buyer pool.
The Bottom Line For Georgia Homeowners
If you are considering a 50-year mortgage, ask two hard questions: "What is my real total cost over time?" and "How quickly will I build equity if I need to sell in five to seven years?" If you are weighing a home warranty, look at the age of your systems and your savings and decide whether you are buying peace of mind or just another bill. And if you deferred payments during COVID or are in financial distress, get clarity on your mortgage paperwork before you go under contract.
The market is changing, but careful math and clear eyes still go a long way.
For more in-depth conversations like this, listen to "Inside Georgia Real Estate with Deborah Morton," Saturdays from 1 pm to 2 pm on WSB Radio.