Overview
- President Trump downplayed concerns in a Fox News interview, arguing a 50-year mortgage would simply lower monthly payments by stretching the term.
- FHFA Director Bill Pulte promoted the concept as a potential "game changer," and Politico reports he personally pitched Trump, prompting anger from White House staff and conservative allies.
- Housing economists say any monthly savings would be modest while total interest paid would soar and equity would build far more slowly, increasing risks for borrowers.
- Analysts warn lenders would likely charge higher rates for such long loans and caution that increased buying power without more housing supply could push prices higher.
- White House economic officials say the idea is under study, and outside experts point to Dodd-Frank’s 30-year cap on qualified mortgages as a key obstacle, with critics like Rep. Marjorie Taylor Greene and Fox Business host Charles Payne opposing the plan.