Trump’s New Push: 50-Year Mortgages
For sale sign is displayed in front of a home in Wheeling, Ill., Thursday, Sept. 11, 2025. (AP Photo/Nam Y. Huh)
President Trump is pitching a bold new idea to make homeownership more affordable amid record-high housing prices: allow homebuyers to take out 50-year mortgages.
“It’s not even a big deal,” President Trump told Fox News’ Laura Ingraham during a Monday night interview. “All it means is you pay less per month. You pay it over a longer period of time. It’s not like a big factor. It might help a little bit.”
The proposal—still in discussion—has quickly sparked debate among housing experts and financial analysts.
Supporters See Relief for Buyers
Bill Pulte, President Trump’s federal housing director, endorsed the idea on social media, calling it “a complete game-changer” and confirming that the administration is exploring how to implement it. Pulte suggested the longer-term mortgage could open doors for millions of Americans currently priced out of the market.
Critics Warn of Long-Term Costs
Others, however, warn the plan could cost homeowners far more in the long run. Fox Business anchor Charles Payne noted that while monthly payments might drop by about $500 compared to a 30-year loan, the total cost of the home could nearly double.
“By the time you finish paying this bad boy off, the 30-year, you pay about $359,000 versus a 50-year, almost $700,000,” Payne said. “That’s just a gargantuan difference just to make people feel better. That’s not the way to do this.”
Economists Urge Caution
Analysts told Politico the idea could slow wealth-building for homeowners, since a longer repayment schedule means more years of interest payments and slower equity growth.
“This is more of a stopgap band-aid to address affordability,” said Gennadiy Goldberg of TD Securities.
Cornell Law professor David Reiss added that extending mortgage terms could complicate retirement planning: “We often hear financial advice that you want to try to pay off your mortgage before the time that you retire. So that’s a problem.”
Industry Voices See a Middle Ground
Still, some in the mortgage industry view the plan as a practical starting point. Phil Crescenzo of Nation One Mortgage Corporation told CNN it could help first-time buyers who might not otherwise qualify for a home loan. “It’s not like somebody would have to stay in that loan forever,” he said. “It’s a starting point—they could always refinance.”
Policy Hurdles Ahead
Regulatory changes would be needed before such loans could be offered. CNBC reports that the Dodd-Frank Act currently doesn’t authorize 50-year mortgages, meaning congressional approval could take up to a year.
“Fannie and Freddie could establish a secondary market for 50-year mortgages in advance of policy changes,” wrote Jaret Seiberg of TD Cowen. “Yet this would not alter the legal liability for lenders. It is why we believe lenders will not originate 50-year mortgages absent qualified-mortgage policy changes.”
About Post Author
