US Considers 50-Year Mortgages to Improve Housing Affordability

In the United States, most new homebuyers opt for 30-year mortgages, but the Donald Trump administration has raised the topic of long-term loans to a new level: the possibility of a 50-year payoff. The director of the Federal Housing Finance Agency, Bill Pulte, called the proposed move “a complete game changer”.

Although full details have not yet been released, officials say extending the term to fifteen years or longer could reduce monthly payments and make home buying more affordable for those who currently cannot afford it.

What a 50-year Mortgage Means

Experts warn: reducing monthly payments does not always mean lower costs over the life of the loan. Because of the larger total interest and the longer repayment period, the total amount repaid could rise, and this could also push up home prices if supply remains constrained.

“This is not a good idea. The monthly payment savings will be very small. At the same time you are putting people at risk, because it would take an extraordinarily long time to fully pay off the loan.”

For example, consider a house costing $450,000. With a 30-year fixed mortgage at about 6.25%, the monthly payment would be about $2,771, and the total interest paid over the life of the loan would exceed $547,000.

At the same rate for 50 years, the monthly payment would drop to about $2,452, but total interest would rise to about $1.02 million – nearly 87% more than for the 30-year loan.

“With a 50-year loan you pay down the principal at the start, so your interest decreases only slightly,” noted Green. “Depending on the size of the loan, it could be 30–40 years before you fully pay off even half of the principal under such terms.”

“Changing mortgages requires a more nuanced understanding of who would buy such a loan and how borrowers would handle it. Whether the rate would be higher than the 30-year one depends on this.”

The legislative side of the issue is also complex. After the 2008 financial crisis, loan terms were not supposed to exceed 30 years, which creates additional legal obstacles for implementing 50-year mortgages.

“You will need many legislative steps to make this a reality,” Green said.

The White House has yet to reveal details about the legislative plans. A White House spokesperson said: “President Trump is continually looking for new ways to increase housing affordability for ordinary Americans. Any official policy changes will be announced by the White House.”

Last year the median age of the first-time homebuyer in the United States reached record highs. A combination of high housing prices with mortgage rates around 6–7% forced many young Americans to delay purchasing their own homes.

Some experts believe that a 50-year mortgage can have certain advantages in specific cases. For example, Kretszenzo noted that while homeowners would accumulate equity more slowly, such a loan could still be more favorable than renting and would never reduce equity to zero.

“This does not mean that someone has to stay in this loan forever. It’s just a starting point”

“If a rental option against a 50-year mortgage that won’t yield significant equity growth over several years appeared, I would still choose that option over renting,” he added.

Conclusion

At this stage, the concept remains a topic of debate: it could reduce monthly payments for some borrowers, but it could increase the total overpayment and potentially push the real estate market toward higher prices. The solution lies in detailed legislative work, a clear understanding of who would actually use such a loan, and careful analysis of the real financial implications for family budgets.

In any case, for many homebuyers it’s more important to rely on real financial capacity than on short-term monthly payment savings. A 50-year mortgage is a topic for consideration that requires careful study and responsible decisions in the context of future legislative and economic development.