White House Considers 50-Year Mortgage Amid Internal Discontent

The Trump administration is evaluating a proposal to introduce 50-year mortgages as a means to improve housing affordability. Federal Housing Finance Agency (FHFA) Director Bill Pulte recently discussed the idea with President Trump, who subsequently approved a related post on Truth Social.

The proposal has elicited mixed reactions within the administration. Some officials expressed frustration over Pulte's direct approach to the president without broader consultation. One source indicated that President Trump was lukewarm about the suggestion but announced it "to get Pulte to shut up about it." Another source noted that discussions about 40-year and 50-year mortgages had occurred among Commerce Secretary Howard Lutnick, National Economic Council Director Kevin Hassett, and others.

Externally, the proposal has faced criticism from economists and policymakers. While extending mortgage terms could lower monthly payments—for instance, reducing payments on a median-priced $415,200 home from $2,288 to $2,022—it would significantly increase the total interest paid over the loan's lifespan by approximately $389,000. Critics argue that such a move fails to address core issues like housing supply shortages and high interest rates.

President Trump downplayed the significance of the proposal, stating, "All it means is you pay less per month. You pay it over a longer period of time. It's not like a big factor. It might help a little bit."

The administration continues to explore various strategies to enhance housing affordability, including efforts to alleviate the housing crunch. No final decisions have been made regarding the implementation of 50-year mortgages.