Overview
- FHFA Director Bill Pulte said on X that the administration is working on a 50-year mortgage after President Trump posted a Truth Social graphic referencing Franklin D. Roosevelt’s 30-year standard.
- The White House has not released a formal plan or details, with nothing posted on the official press page as of the latest reports.
- Current Dodd-Frank Qualified Mortgage rules bar 40- and 50-year terms, so broad adoption would require statutory or regulatory revisions or non-QM products that typically carry higher rates.
- At 6.575% with 20% down, a $400,000 loan’s monthly principal-and-interest payment is about $2,038 on a 30-year versus $1,822 on a 50-year, lowering payments but slowing equity build-up.
- The move aligns with the administration’s affordability agenda, including an inauguration-day order on housing prices and an evaluation of taking Fannie Mae and Freddie Mac public.