Why Housing Experts Are Skeptical About the Trump Administration’s 50-Year Mortgage Proposal

The housing market has been challenging, so governments worldwide are exploring ways to increase affordability. Recently, the Trump administration proposed the 50-year mortgage to make monthly payments more affordable. The plan has received skepticism and approval from real estate professionals, as the ramifications would be significant. Here’s what you need to know about the policy proposal. 

Skepticism About the 50-Year Mortgage

A mortgage is a significant milestone and responsibility. As a homeowner, you want to be wise about this long-term loan. Here are five reasons why the 50-year mortgage proposal has received pushback from industry experts. 

1. Paying More in Interest

When paying your mortgage, your monthly payment is more than just the principal. For the first few years, you’re paying off the interest before it shifts toward the rest of the loan. If you undertake a 50-year mortgage, you’ll likely get a higher interest rate because the term is extended. However, a larger down payment may decrease the rate because the lender assumes less risk. 

2. Overcoming Market Hurdles

A 30-year mortgage has been the standard since the Great Depression. Nowadays, it’s the longest loan you can get that’s still insured by government-sponsored enterprises. Experts say regulators would have to change policies at Fannie Mae and Freddie Mac to help these 50-year mortgages qualify for protection. Without the government’s backing, this policy would be less attractive to buyers. 

Robert Levi Thompson of Legacy Group International says the 50-year mortgage could repeat what happened two decades ago. “The problem is that again we could end up like 2007 through 2010, when those who got the easier loans ended up losing their homes because of bad decisions and poor financing,” he said.

3. Building Equity Slowly

Home ownership is about building equity, which you can use to reinvest in home improvements or acquire rental properties. However, a 50-year mortgage slows this progress because you’re spending more time paying interest. You could spend nearly two decades paying off instead of the principal. Lacking equity means you have less flexibility when you need to sell your home. 

4. Inflating Home Prices

The market has favored sellers for the past few years. Housing prices rose by 55% nationwide from 2020 to 2025, marking a significant shift. Instituting a 50-year mortgage invites more buyers to the same market, which inflates prices. The larger crowd of bidders is competing for the existing inventory of houses, which is slim pickings in most areas. 

5. Avoiding the Root Problem

The 50-year mortgage avoids the root problem of the affordability crisis. America has way more buyers than new homes, as the limited supply has driven up prices. Instead, the government should focus on incentivizing new construction and streamlining the permitting process. Municipalities can do their part by reforming zoning laws that encourage dense housing types. 

Daniel Ickowicz of Elite International Realty warns buyers about the hype and says the proposal is a cautionary tale. “The 50-Year Mortgage is a cosmetic solution rather than a structural one, he said. Yes, it improves monthly affordability on paper, but at the cost of a massive long-term interest.”

Why the Proposal Could Work for Buyers 

Economists and financial experts caution the introduction of a 50-year mortgage. However, it could have some positive effects. Here are five reasons why it could be a pragmatic tool for prospective buyers. 

Lowering Monthly Payments

The core benefit is lowering your monthly payment. At face value, this benefit is attractive to potential buyers because they pay less each month. A lower mortgage payment can lower your debt-to-income (DTI) ratio, which determines whether you can handle a loan. For some buyers, it could be the difference in qualifying for a loan.  

Entering Expensive Markets

Costs prohibit some from living in family-friendly markets like Cambridge, Massachusetts, or Seattle, Washington. However, the 50-year mortgage would make this goal more feasible. A lower DTI ratio means you’re more likely to qualify for a mortgage in these expensive cities. 

Alexei Morgado, a Florida real estate agent and Lexawise founder, said the mortgage proposal could open up possibilities for some buyers. 

“One advantage is that lower mortgage payments make homeownership even more accessible for those who otherwise couldn’t afford it,” he said. “For those looking to buy homes in upscale markets, like Florida, this will mean greater affordability.

“However, there’s also a significant downside. You’ll pay much more interest on your loan, and that definitely starts to add up.”

Increasing Cash Flow

You’re saving money on your monthly payments, so you can reallocate that money toward other expenses. Some people may use the extra cash to pay recurring bills, whereas others may spend it on luxuries. You could invest the money in a high-yield savings account or other business ventures. Regardless, the lower monthly payments give you more financial flexibility, which is essential amid economic uncertainty. 

Getting a Foot in the Door

The National Association of Realtors says the median age of first-time home buyers is 40, up from the past. Waiting until middle age to buy a home means missing out on equity in your starter home. However, the 50-year mortgage could be a gateway for people in their 20s or 30s. It’s a way to get their foot in the door and skin in the game. 

Bringing Generational Stability

Some people’s first mortgage is their starter house, which they’ll sell after 10 or 20 years. However, you may want to stay and make it your forever home. A 50-year mortgage could be a strategy to introduce stability to your family and pass down the asset through generations. You can lock in low monthly payments, which is vital for retirees and those on fixed incomes. 

Gauging the 50-Year Mortgage Proposal

The housing crisis is complex and will take years to solve. Governments worldwide are exploring how to make homes more affordable for the average person. The 50-year mortgage could open up possibilities for some, but it’s essential to be careful when gauging your housing options.