Following key election losses where cost-of-living concerns dominated voter priorities, President Donald Trump has proposed introducing 50-year mortgages as a solution to housing affordability challenges. The concept, floated in a November 2025 interview, promised lower monthly payments for homeowners struggling with rising housing costs.
Industry Experts Raise Serious Concerns
Despite the political timing, the housing industry has largely rejected Trump's proposal as fundamentally flawed. Financial experts and housing advocates have dismissed the 50-year mortgage model as short-sighted, warning that it provides minimal actual cost relief while creating significant long-term financial disadvantages for homeowners.
David Dworkin, CEO of the National Housing Conference, emphasized that "a 50-year mortgage dramatically depreciates the biggest value of homeownership — wealth building. Over time, the loss of equity quickly overcomes any savings on payment."
The Hidden Costs of Extended Mortgages
Detailed analysis reveals the substantial financial drawbacks of extending mortgage terms to five decades. Lawrence Yun, chief economist at the National Association of Realtors, provided a concrete example using a US$420,000 mortgage with 20% down and a 6.3% interest rate.
While the monthly payment would be US$236 lower compared to a standard 30-year mortgage, the total cost would skyrocket to approximately US$1.1 million with nearly US$360,000 more in interest paid over the loan's lifetime. Even more concerning, homeowners wouldn't begin building meaningful equity until the final decade of repayment.
Practical Implementation Challenges
The proposal faces significant regulatory and market barriers that would delay implementation for at least a year. The Consumer Financial Protection Bureau would need to amend the Qualified Mortgage rule to allow terms exceeding 30 years, a process requiring formal notice-and-comment procedures.
Furthermore, Fannie Mae and Freddie Mac, which support over half of the residential mortgage market, are currently prohibited from purchasing non-Qualified Mortgages. As Mortgage Bankers Association spokesperson Falen Pitts noted, "Lender willingness to offer a 50-year mortgage product is likely to be muted" without these crucial legal protections.
The timing presents additional concerns as the National Association of Realtors recently reported the median age of first-time homebuyers has reached a record 40 years old, meaning many borrowers would be paying mortgages well into retirement age under Trump's proposal.
