"Is the key to making homeownership more affordable just giving buyers more time? That's the pitch from President Donald Trump, who proposed creating a 50-year mortgage. The social media post touting the idea also got a cosign from Federal Housing Finance Agency director Bill Pulte. He said a 50-year mortgage is being worked on and would be "a complete game changer.""
"the median price of a home these days. Putting 20% down gets you a $348,000 mortgage. At a 6% interest rate, a 30-year fixed mortgage would mean a monthly payment of $2,086. On a 50-year fixed, that payment drops to $1,832. But it comes with a massive catch: Longer mortgage terms mean borrowers build equity in their house a lot slower and pay a considerable amount more in interest. The interest paid on that $348,000 mortgage over 30 years: $403,117. For a 50-year mortgage: $751,113."
President Donald Trump proposed creating a 50-year mortgage and Federal Housing Finance Agency director Bill Pulte endorsed the concept as transformative. The proposal aims to make homeownership more affordable by lowering monthly payments, particularly for younger and first-time buyers whose median purchase age rose to 40 in 2025. A 50-year fixed at 6% on a $348,000 mortgage would reduce monthly payments from $2,086 to $1,832. Longer terms, however, slow equity buildup and raise total interest dramatically, increasing interest paid from $403,117 over 30 years to $751,113 over 50 years. The proposal accompanies other ideas like using tariff revenue for dividend payments.
Read at Business Insider
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