As the White House and federal housing officials float backing 50-year fixed-rate mortgages as a potential tool to ease U.S. housing affordability, the proposal has drawn quick praise from some quarters and sharp criticism from housing economists and industry groups.
The idea surfaced publicly this month when President Donald Trump shared an image on Truth Social that appeared to hint at his support for introducing 50-year mortgages — a move later confirmed by FHFA Director Bill Pulte in a post on X.
That image featured a portrait of President Franklin D. Roosevelt labeled “30-year mortgage,” alongside Trump’s own photo under the label “50-year mortgage.”
Pulte responded on X, writing, “Thanks to President Trump, we are indeed working on The 50 year Mortgage – a complete game changer.”
The math agents should be ready to explain
Extending terms from 30 years to 50 years does lower monthly payments — but it also substantially increases total interest paid and slows equity accumulation.
An Associated Press analysis shows a median-priced home would see monthly principal and interest fall modestly under a 50-year term while the buyer could pay roughly $389,000 more in interest over the life of the loan compared with a 30-year mortgage.
“Extending a mortgage from 30 years to 50 years could double the (dollar) amount of interest paid by the homebuyer on a median-priced home over the life of the loan and significantly slow equity accumulation,” wrote John Lovallo of UBS Securities.
HousingWire’s modeling shows similar tradeoffs and warned that regulatory and market realities could push rates higher on 50-year loans — erasing some of the monthly-payment advantage.
Legal and secondary-market hurdles
A major practical barrier is federal law and the structure of the secondary mortgage market.
The Dodd-Frank era Qualified Mortgage rules generally limit insured, marketable loans to 30-year terms; Fannie Mae and Freddie Mac currently cannot buy 40- or 50-year fixed-rate loans without regulatory changes.
That means any broad rollout likely would require congressional or regulatory amendments. HousingWire noted that a 50-year mortgage could exist as a non-QM product, but that typically brings higher rates.
Experts’ objections — and a few who see nuance
Industry analysts and housing economists have largely reacted skeptically.
HousingWire Lead Analyst Logan Mohtashami warned against implementing the policy as a market subsidy.
“I understand that we have housing affordability challenges in America, but subsidizing more demand from 30- to 50-year mortgages is not the policy we want to take now,” he said. “Housing has to balance itself out through slowing home-price growth and wages increasing — as it has for many decades. To add another subsidization to the market just prevents that healing process from occurring, which also prevents less equity build out as well. So I am not a fan of any increasing in the amortization, the 30-year fixed is perfectly fine as is.
“Additionally, a 50-year mortgage is currently illegal under the qualified mortgage law, so that would have to change as well.”
Other observers stress the supply side — arguing that a 50-year term could simply inflate demand and push prices higher unless supply increases in tandem.
“Many of the big things that would address supply right now are going in the wrong direction,” said Mike Konczal, senior director of policy and research at the Economic Security Project, told AP News, pointing to building costs and regulatory hurdles that limit new construction.
Some commentators and columnists have taken a more measured view, noting that, properly designed and targeted, longer amortizations might help specific groups — possibly by pairing longer terms with lower rates or targeted eligibility rules.
However, those arguments are contingent on precise policy details that have not yet been released.
What agents should tell clients
To sum it up, expert advice for agents on what to communicate to clients about 50-year mortgages includes explaining tradeoffs plainly — lower monthly payments versus slower equity and much higher lifetime interest.
A nationwide, purchase-friendly 50-year mortgage would also likely require changes to existing federal rules and to the secondary market.
Emphasize affordability alternatives such as first-time buyer programs and down-payment assistance.
Additionally, experts say to detail efforts to expand supply such as zoning reforms are also widely cited by experts as more durable ways to improve affordability.
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