Trump proposes 50-year mortgage

Donald Trump has proposed the creation of a 50-year mortgage to address housing affordability, aiming to lower monthly payments for buyers by extending the length of home loans far beyond the current standard of 30 years. This concept is promoted as a way to help young people achieve homeownership despite rising home prices and interest rates, with Federal Housing Finance Agency Director Bill Pulte stating that the administration is actively working on the plan.​

How the 50-Year Mortgage Works

A 50-year mortgage would stretch monthly payments over five decades, resulting in smaller payments each month compared to shorter loan terms. For example, a $300,000 home with a 5% interest rate and a 5% down payment would cost about $1,294 per month with a 50-year fixed mortgage, compared to $1,530 per month for a 30-year fixed, and $2,254 per month for a 15-year fixed loan. However, buyers would pay substantially more in total interest over the life of the loan.​

Regulatory and Market Challenges

Currently, U.S. housing regulations—specifically those enacted after the 2008 financial crisis—cap standard mortgage terms at 30 years, meaning new legislation would be required to make 50-year mortgages widely available. There is bipartisan interest in improving housing affordability, but resistance exists, especially among lawmakers concerned that longer loans will benefit banks and builders more than buyers, potentially trapping people in debt for life.​

Potential Impacts and Risks

While the proposal could improve access to homeownership by lowering monthly costs, many experts warn that borrowers will end up paying dramatically more interest overall. Additionally, easier access to financing could drive up home prices, further exacerbating affordability issues for future buyers. Critics also note that slower equity building and higher cumulative debt could deter long-term financial stability for homeowners.