Trump Proposes 50-Year Mortgage to Address Housing Affordability Crisis

WASHINGTON, D.C. — President Donald Trump recently proposed a 50-year fixed-rate mortgage plan as a way to make homebuying more accessible for younger Americans facing high property prices. The proposal was shared via a post on his Truth Social platform over the weekend.

Trump’s initiative aims to reduce monthly payments by extending the loan term, thereby allowing homeowners to manage their cash flow better. According to Bill Pulte, director of the Federal Housing Finance Agency, this new mortgage option could be a “complete game changer” for many.

However, housing experts express skepticism regarding the long-term implications of such a strategy. Daryl Fairweather, chief economist at Redfin, said while lower monthly payments could offer short-term relief, borrowing for 50 years may lead to borrowers paying significantly more in interest over the life of the loan.

For instance, computations show that a 50-year mortgage could save a homebuyer only about $40 per month compared to a 30-year mortgage, but would likely incur a higher overall cost due to extended interest payments. Fairweather pointed out that waiting over two decades for a loan to be paid off could hinder wealth accumulation for younger buyers.

Economists suggest that merely extending mortgage terms does not address the core issue of housing affordability, which stems from stagnating housing supplies amid rising demand. Ned Davis Research projects a shortage of 1.1 million housing units in the U.S. by the end of this year.

Moreover, reactions within Trump’s own party have been mixed. Georgia Rep. Marjorie Taylor Greene criticized the plan, labeling it as a move that would financially burden future generations. Greene and other opponents suggest focusing on other strategies to reduce housing costs, such as limiting corporate purchases of single-family homes.

The proposed 50-year mortgage also probably requires modifications to existing regulations, as current laws restrict mortgage terms to a maximum of 30 years. Consequently, it remains unclear how such a plan would be implemented legally.

Overall, while the idea aims to alleviate immediate pressures on young homebuyers, its practicality and effectiveness in reshaping the housing market remains uncertain as discussions continue.