Overview
- President Trump recently floated 50-year loans as an affordability tool, while several economists argue the approach misdiagnoses a supply-driven problem.
- A Washington Examiner comparison shows that on a $225,000 home at 6.25%, a 50-year loan trims about $159 from the monthly payment versus 30 years but raises total interest to about $510,600 from $273,600.
- Analysts cited by the Daily Signal and Hillsdale College warn longer terms would encourage larger borrowing, push home prices higher, and leave buyers with minimal equity for many years.
- Investor Grant Cardone labeled 50-year mortgages a major real estate opportunity that could widen the buyer pool, prompting social-media backlash characterizing the idea as debt servitude.
- Market context includes Zillow data showing average prices near $503,800, a U.S. Chamber estimate of a roughly 5 million home shortfall, and NAR figures indicating lower homeownership and an older first-time buyer.