Trump's 50-Year Mortgages Are Horrible for Homebuyers, but Great for These 2 REITs to Explode

"President Trump's proposal for 50-year mortgages aims to tackle the housing affordability crisis by lowering monthly payments. The plan, supported by Federal Housing Finance Agency Director Bill Pulte, would extend the standard 30-year term to 50 years, potentially through backing by Fannie Mae and Freddie Mac. Supporters argue this could help younger buyers and first-time homeowners enter the market amid high home prices and elevated interest rates."

"However, experts widely criticize the idea as detrimental for borrowers. While monthly payments drop modestly - on a $400,000 loan at around 6.5% to 7%, a 50-year term might save $100 to $200 per month compared to 30-year mortgages - the total interest paid surges dramatically. Estimates show borrowers could pay 80% to 90% more in lifetime interest. Rates on 50-year loans would also likely be higher than 30-year ones, further eroding savings."

"Equity builds much slower, leaving homeowners with little wealth accumulation for decades and greater vulnerability to market downturns. Critics note it could inflate home prices by boosting demand without adding supply, worsening affordability long-term. While a 50-year mortgage is terrible financially for homebuyers, it would be great for mortgage REITs Annaly Capital Management ( ) and AGNC Investment ( NASDAQ:AGNC ). Here's why you should consider investing in them today."

The 50-year mortgage proposal would extend standard 30-year loans to 50 years, potentially backed by Fannie Mae and Freddie Mac, to reduce monthly payments. Supporters contend younger and first-time buyers could enter the market amid high prices and elevated interest rates. Monthly payments on a $400,000 loan at roughly 6.5–7% would fall by about $100–$200 versus a 30-year mortgage, while lifetime interest could increase by roughly 80–90%. Interest rates on 50-year loans would likely be higher, equity would accumulate much more slowly, and homeowners would face greater downside vulnerability. Mortgage REITs like Annaly and AGNC would benefit from longer MBS durations and increased interest collected.

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