What does a 50-year mortgage mean for homebuyers?
The Trump administration is working on introducing 50-year mortgages for homebuyers — a plan that has drawn criticism even from some of the president’s allies, and experts warn that it may come with significant downsides.
President Donald Trump hinted that his administration would roll out 50-year mortgages in a post on Truth Social over the weekend. Shortly afterward, the director of the Federal Housing Finance Agency, Bill Pulte, wrote on X: “Thanks to President Trump, we are already working on a 50-year mortgage — a radical change.”
A 50-year mortgage would represent a major extension of the most common type of mortgage in the United States — the 30-year fixed mortgage, in which the loan is amortized, or paid off, over 30 years.
Many right-wing commentators and lawmakers rushed to express their opposition to the idea. Representative Marjorie Taylor Greene said on X that it would “ultimately benefit banks, mortgage lenders, and homebuilders, while people pay far higher interest over time and die before their homes are paid off.”
The proposal has also drawn criticism from housing experts, who say the benefits to homebuyers would be limited. Here is what a 50-year mortgage would mean for potential buyers:
What are the benefits?
Monthly payments for a 50-year mortgage would be lower than those for a 30-year mortgage, according to Alex Schwartz, a professor of urban policy at The New School.
For example, imagine someone buying a $500,000 home with a 30-year mortgage. The current interest rate for a 30-year fixed mortgage is about 6.22%, according to Freddie Mac. This means that if the buyer puts down 20%, their monthly principal-and-interest payment would be $2,455, according to Fannie Mae’s mortgage calculator. But with a 50-year mortgage — also with 20% down — their monthly principal-and-interest payment, assuming the same interest rate, would be $2,171. That’s a little under $300 less per month compared with a 30-year mortgage.
“The reduction is real, but it isn’t large,” Schwartz says of the difference in monthly payments between 30- and 50-year mortgages.
He also notes that the interest rate on a 50-year mortgage would likely be higher than that of a 30-year mortgage, which could further reduce potential savings. And he adds that a higher interest rate is only one of several potential drawbacks of a 50-year mortgage.
What are the downsides?
One drawback of a 50-year mortgage is that it takes much longer for homeowners to pay off their debt.
“If you’re 30 years old and you buy a home with a 30-year mortgage, you’ll own it free and clear by the time you’re 60. You’ll only need to pay property taxes and maintenance costs, without a mortgage during your later years or retirement,” Schwartz explains.
“But if you take out a 50-year mortgage at age 30, the loan won’t be paid off until you’re 80. So you will likely face a period — probably during retirement — where you still have to cover debt service in addition to taxes and maintenance,” he says.
Schwartz also says another problem is that homeowners won’t build equity as quickly with a 50-year mortgage compared to a 30-year one. In the early years of a mortgage, most payments go toward interest; it takes several years before homeowners meaningfully reduce their principal. Buyers with 50-year mortgages will pay down their debt more slowly than those with 30-year mortgages.
If housing prices decline, Schwartz fears that people with 50-year mortgages could end up with negative equity — meaning they owe more on their mortgage than their home is worth.
He also notes that interest rates for 50-year mortgages will likely be higher than for 30-year mortgages. Currently, 30-year mortgage rates are already higher than 15-year rates.
“There are major trade-offs,” Schwartz says. “Your monthly payment is a bit lower, but it takes far longer to build equity, and the mortgage lasts into your later years. Your housing affordability problems may be worse once you are out of the labor force than they would be with a 30-year mortgage, and you face a greater risk of negative equity.”
Will a 50-year mortgage help solve housing affordability?
Not by much, according to Schwartz. For people struggling with their current mortgage, refinancing into a 50-year loan could make their monthly payments more manageable. But he warns that a long-term mortgage carries significant risks.
“Will it make homeownership easier for first-time buyers? I don’t think so,” he says.
Amid criticism of the proposal, Pulte posted on X on Sunday acknowledging concerns: “We hear you. We are intensely focused on ensuring the American Dream for young people — and that can only be achieved at an economic level where buying a home becomes possible. A 50-year mortgage is just one potential tool among a wide arsenal of solutions we are developing.”
President Trump also responded to the criticism. In an interview with Fox News that aired Monday, he said the 50-year mortgage is “not a big deal.”
“All it means is you pay less per month — you pay it over a longer period of time. It’s not a huge factor. It might help a little,” Trump said.
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