Overview
- HUD Secretary Scott Turner said the 50-year mortgage is still on the table but described it as very early and subject to further study.
- Turner offered no policy details or timeline and noted any step must safeguard FHA and Ginnie Mae programs.
- Analyses cited in coverage show longer terms lower monthly payments but significantly raise total interest and slow equity building, with a $500,000 loan at 6.1% topping $1 million in interest over 50 years.
- Industry projections suggest such loans could carry rates about 25 basis points higher, trimming the monthly savings; on a $400,000 loan, the reduction could be under $200.
- Economists warn the idea would not fix supply-driven affordability challenges and could push home prices higher rather than broaden ownership.