A proposal from the Trump administration to create a 50-year mortgage has been met with significant criticism from within the President's own party and from economists, who warn it would dramatically increase the cost of homeownership while failing to address the core issue of housing supply.
The concept of a government-backed 50-year mortgage entered public discourse after President Donald Trump posted about it on social media. Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), confirmed the agency was "working on" the proposal, which he called a "complete game-changer" for affordability . The stated aim is to lower monthly mortgage payments for buyers struggling with high home prices and interest rates .
However, the idea was quickly downplayed by Trump himself following criticism from key allies. In a Fox News interview, he characterized the policy as "not a big deal" and something that "might help a little bit" . The proposal faced immediate backlash from influential figures in the conservative movement. Representative Marjorie Taylor Greene (R-Ga.) argued the plan would leave Americans "in debt forever, in debt for life!" and would ultimately benefit banks and lenders . Right-wing activist Mike Cernovich similarly criticized the concept of "lifetime mortgages" .
The central trade-off of a 50-year mortgage is a slight reduction in the monthly payment at the cost of a massive increase in total interest paid over the life of the loan . Analyses consistently show the monthly savings would be relatively modest. Estimates based on a median-priced home suggest savings ranging from approximately $119 to $283 per month . This lower payment could marginally increase a buyer's purchasing power, allowing them to qualify for a more expensive home . This short-term relief comes with a steep long-term penalty. Borrowers would pay significantly more in total interest; analyses indicate the total interest paid over the life of a 50-year loan could be 40% to 100% higher than with a 30-year mortgage . For a typical loan, this could mean paying an additional $389,000 to $421,000 in interest . Furthermore, homeowners would build equity at a much slower rate, taking nearly 30 years to accumulate $100,000 in equity, compared to 12-13 years with a 30-year mortgage .
Beyond the financial impact on borrowers, the proposal faces practical and economic hurdles. The 50-year mortgage faces a significant legal barrier as it does not meet the definition of a "Qualified Mortgage" under the Dodd-Frank Act, which currently caps terms at 30 years . Amending this would require congressional approval, a process analysts say could take at least a year . Demographically, with the average first-time homebuyer now aged 38 to 40, a 50-year loan could mean borrowers are paying a mortgage into their late 80s, raising the prospect of debt being passed on to their children. A widespread criticism from economists is that the proposal does nothing to address the fundamental problem of housing affordability: a severe shortage of homes. The U.S. is estimated to be short of 4 to 7 million housing units . Experts warn that by increasing demand without boosting supply, such a policy could further inflate home prices, ultimately worsening affordability . Daryl Fairweather, chief economist at Redfin, summarized this view, stating, "A more effective, long-term solution is to fix the supply side" .