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TRUMPS 50 YEAR MORTGAGE  
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Mary Cunningham
November 11, 2025
Morning Brew
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_ Yet total interest on that same 50-year loan would accrue to about
$816,000, almost double the $438,000 in interest paid over a 30-year
term, he calculated. _

, Niv Bavarsky

 

Would a 50-year mortgage make homeownership more affordable? 

The Trump administration is working on a plan for a mortgage term that
spans five decades, Federal Housing Finance Agency Director Bill Pulte
confirmed this weekend, calling it "a complete game changer" and a
"potential weapon in a WIDE arsenal of solutions that we are
developing right now."

Details are still sparse, but a 50-year loan could meaningfully
reshape a housing market where 30 years is the norm. Experts say
homebuyers who opt for the longer loan would see lower monthly
payments but a dramatic increase in the total cost of the loan.

"Borrowers might be able to pay less monthly principal and interest,
since the loan would be spread out over half a century," said
NerdWallet lending expert Kate Wood in an email. "But the total
interest paid over the life of the loan would be staggering, since
even with a low rate, you're looking at 50 years' worth of interest."

Take a homeowner who wants to buy a $400,000 home with a 10% down
payment, requiring a $360,000 loan. Even if both 30- and 50-year loans
carried the same 6.25% rate — which experts say is unlikely —
borrowers choosing the longer term would save only about $250 a month,
Joel Berner, senior economist at Realtor.com, told CBS News.

In reality, rates on 50-year mortgages would probably run higher than
30-year loans, meaning those monthly savings could shrink even
further, he added.

Yet total interest on that same 50-year loan would accrue to about
$816,000, almost double the $438,000 in interest paid over a 30-year
term, he calculated.

At the same time, buyers with a 50-year mortgage would build equity
far more slowly than those with shorter loans, Wood noted. That's
because a larger share of early payments goes toward interest, leaving
less to chip away at the principal.

"Paying down the loan over so much time could also mean building
equity at an incredibly slow pace," she said. 

Addressing the affordability crisis

The 50-year mortgage proposal aims to spur housing demand at a time
when many Americans are priced out of the market by high mortgage
rates and soaring home values, Berner noted.

The typical homeowner now spends 39% of their income on housing, well
above the 30% affordability threshold recommended by financial
experts, according
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to Redfin.

Mortgage rates have eased this year
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but remain above 6%, more than double the pandemic-era lows.
Meanwhile, home prices, though slightly down from their peak, averaged
$410,800 in the second quarter, about 25% higher than in early 2020,
according to data from the Federal Reserve Bank of St. Louis.

While 15-year mortgages are also available, most homebuyers opt for
30-year loans because the terms allow them to spread out payments over
a longer timeframe, lowering monthly costs, according
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to the personal finance website Bankrate.

The Federal Housing Finance Agency said it is "evaluating all options
to address housing affordability," including making mortgages
assumable or portable. A White House official added that "President
Trump is always exploring new ways to improve housing affordability
for everyday Americans."

What about the interest rate on a 50-year loan? 

A half-century mortgage would give Americans an even longer window to
pay back their loan, but experts say the monthly savings would be
relatively modest because interest rates for 50-year loans would
likely be higher than for 30-year terms. 

That's because lenders view longer time frames as carrying higher
risks of default, notes NerdWallet's Wood. Likewise, rates for 15-year
mortgages are generally lower than for 30-year loans because lenders
view the shorter timeframe as less risky.

The typical 15-year loan today has an interest rate of about 5.6%,
according to Bankrate, versus about 6.25% for the 30-year loan.

Extending loan terms could lift buyer demand, but that might push home
prices even higher unless more housing is built, Berner added —
erasing any benefit from lower monthly payments.

"This is not the best way to solve housing affordability," Berner
said.

Mr. Trump defended the 50-year mortgage in a Fox News interview
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Laura Ingraham questioned the president over criticisms of the plan.
Ingraham noted that some in his MAGA base argue the proposal would
benefit banks while making it take longer for Americans to fully own
their homes.

"It's not even a big deal," Mr. Trump said in response. "You go from
40 to 50 years, and what it means is you pay something less." 

 

* Mortgages
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* MORTGAGE CRISIS
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* Trump
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