President Trump Proposes 50-Year Mortgage Plan to Address Housing Affordability

President Donald Trump has suggested the introduction of a 50-year mortgage plan to make homeownership more attainable, especially for younger individuals facing escalating housing costs.

Bill Pulte, U.S. Director of Federal Housing, indicated that the agency is actively working on implementing this proposal.

The proposed extended mortgage term aims to reduce monthly payments by spreading them over a longer period. For instance, according to Fannie Mae's mortgage calculator, a $300,000 home with a 5% interest rate and a 5% down payment would result in monthly payments of $2,254 for a 15-year mortgage, $1,530 for a 30-year mortgage, and $1,294 for a 50-year mortgage.

However, the Dodd-Frank Wall Street Reform and Consumer Protection Act currently restricts federal mortgages to a maximum term of 30 years. Implementing a 50-year mortgage would require legislative changes.

Reactions to the proposal are mixed. Representative Marjorie Taylor Greene expressed concerns that such mortgages could lead to prolonged debt and increased interest payments over time. Conversely, Kaz Nejatian, CEO of real estate company Opendoor, praised the initiative as potentially the most pro-homeowner government policy in recent decades.

The average age of first-time homebuyers has risen from 28 in 1991 to 38 by 2024, highlighting the growing challenges in housing affordability.

The Federal Housing Agency has yet to comment on the proposal.