The U.S. housing market is in the midst of an affordability crisis. Home prices have soared, mortgage rates remain above 6%, and the average age of first-time buyers has climbed to nearly 40. Against this backdrop, the Trump administration has floated a bold idea: introducing 50-year mortgages as a way to make homeownership more accessible. But would this really help—or create new problems?
What Is a 50-Year Mortgage?
Traditionally, American homebuyers rely on the 30-year fixed mortgage—a product introduced during the New Deal to make homeownership attainable for working families. A 50-year mortgage would extend that timeline by two decades, spreading payments over 600 months instead of 360. The appeal is obvious: lower monthly payments.
For example, on a median-priced home of $415,000 at a 6.2% interest rate:
- 30-year mortgage: about $2,288 per month
- 50-year mortgage: about $2,022 per month
That’s a savings of roughly $266 per month—assuming rates stay the same, which is unlikely. [finance.yahoo.com]
The Pros
- Lower Monthly Payments: This could help buyers qualify for homes they otherwise couldn’t afford.
- Improved Cash Flow: More disposable income for other expenses or investments.
- Potential Market Access: Younger buyers might enter the market sooner, especially in high-cost areas.
The Cons
- Massive Interest Costs: Extending a mortgage from 30 to 50 years could nearly double total interest paid. On a $400,000 loan, that’s about $816,000 in interest versus $438,000 for a 30-year term. [cbsnews.com]
- Slow Equity Build: It could take 30 years to accumulate $100,000 in equity, compared to 12–13 years with a 30-year mortgage. [finance.yahoo.com]
- Higher Rates Likely: Longer terms mean more risk for lenders, so expect higher interest rates—possibly 0.4–0.6% above 30-year rates. [fastcompany.com]
- Regulatory Hurdles: Current rules under the Dodd-Frank Act cap qualified mortgages at 30 years, so legal changes would be required. [housingwire.com]
- Housing Prices Could Rise: Easier financing without more supply could push prices higher, erasing any affordability gains. [thehill.com]
Would It Solve the Affordability Crisis?
Experts say no. The real issue is housing supply, not mortgage structure. The U.S. faces a shortage of nearly 5 million homes. Without aggressive building, longer mortgages may simply inflate demand and prices. [thehill.com]
Who Might Benefit?
- Young Buyers: Those in their 20s could see this as a stepping stone, planning to refinance later.
- High-Cost Markets: In cities like San Diego or New York, lower monthly payments could make entry possible. [10news.com]
Bottom Line
A 50-year mortgage offers short-term relief but long-term challenges. It’s not a silver bullet for housing affordability—and could leave many Americans paying into retirement. Before embracing this idea, policymakers should focus on increasing housing supply and addressing systemic cost drivers.
