Overview
- President Trump signaled support with a social post comparing a 30-year to a 50-year mortgage, and FHFA Director Bill Pulte said the administration is working on the idea.
- No formal policy details or White House announcement have been released, with specifics on implementation still unspecified.
- Extending to 50 years would lower monthly payments but increase total interest costs and slow homeowners’ equity build, according to published examples and analysts.
- Current Dodd-Frank Qualified Mortgage standards do not permit 40- or 50-year terms, so a rule change or costlier non-QM lending would be required for broad adoption.
- Industry experts warn of lender and securitization challenges for any GSE-backed version as ARMs rise to about 10% of applications and households devote roughly 38% of income to mortgage payments, with broader GSE decisions under review by the administration.