Trump Defends Proposal for 50‑Year Mortgages, Calls It ‘Not a Big Deal’
President Donald Trump downplayed criticism of a proposed 50‑year mortgage product, saying it would make home ownership more affordable for a larger segment of Americans. Speaking at a press briefing, the president described the extended‑term loan as a modest adjustment that would “help more people manage their monthly payments.” He added that the idea was not a major shift in housing policy but rather a practical solution to rising price pressures.
The concept of a half‑century mortgage is not new, but it has rarely been offered at scale in the United States. By spreading the principal and interest over 600 months instead of the traditional 360‑month schedule, borrowers could see lower monthly payments, albeit with higher total interest costs over the life of the loan. Proponents argue that such products could broaden access to home ownership for younger buyers and those with limited cash reserves, especially in markets where home prices have outpaced wage growth.
Industry analysts and housing experts, however, cautioned that longer‑term loans might increase financial risk for both borrowers and lenders. They noted that extending the repayment period could lead to higher debt‑to‑income ratios and make homeowners more vulnerable to interest‑rate fluctuations. Some officials also raised concerns about the potential impact on the secondary mortgage market, where standardized loan terms are critical for securitization. Nonetheless, a few economists suggested that, if properly regulated, the product could complement existing mortgage options without destabilizing the market.
Regulators have not yet indicated whether they will formally evaluate the proposal, but the discussion aligns with broader efforts to address housing affordability challenges. Policymakers may consider additional consumer‑protection measures, such as clearer disclosure of total loan costs and stricter underwriting standards. As the debate continues, the 50‑year mortgage remains a tentative idea, with its ultimate adoption likely depending on market demand, regulatory approval, and the evolving economic environment.
