Former President Donald Trump played down the idea of introducing a 50-year mortgage to make housing more affordable. During a Fox News interview on Monday night, he said the plan wouldn’t have a major impact, explaining that it simply means paying less each month but for a much longer time. He said, “It’s not like a big factor. It might help a little bit.” Trump blamed current housing affordability problems on President Joe Biden’s policies and high interest rates set by the Federal Reserve.
The proposal for a 50-year mortgage has sparked mixed reactions. Some critics argue it could trap people in long-term debt. Republican Representative Marjorie Taylor Greene called it “In debt forever, in debt for life!” on social media. Conservative commentator Mike Cernovich described it as “Lifetime mortgages.”
Still, others see it as a potential breakthrough. Federal Housing Finance Agency Director Bill Pulte called the idea “a complete game-changer” after Trump shared a social media post with the words “50-year Mortgage.” Pulte said the agency is also exploring ways to make shorter-term loans like 5-, 10-, and 15-year mortgages more affordable. He added that Fannie Mae and Freddie Mac are studying how to create assumable or portable mortgages in a “safe and sound manner.”
Economists critical of the idea warn that while longer mortgages could lower monthly payments, homeowners would end up paying much more in total interest. They would also build equity in their homes far more slowly, which could make it harder for families to gain real financial security over time.