Overview
- President Donald Trump has publicly promoted a 50-year mortgage option, which FHFA Director Bill Pulte praised as a “complete game changer,” though no policy design or rollout plan has been released.
- UBS analysis cited by Bloomberg finds extending loans to 50 years could roughly double total interest paid, with monthly payment relief modeled at about $119 on a median-priced home.
- A Houston-focused example shows a $330,000 home would accrue roughly $643,000 in interest on a 50-year loan versus about $345,000 on a 30-year loan, highlighting the long-term cost trade-off.
- Experts caution borrowers would build equity far more slowly, could face longer PMI exposure, and—with first-time buyers near age 40—may carry mortgage debt into retirement.
- Analysts note broad adoption could require changes to rules tied to Dodd-Frank and secondary-market standards, with any securitization by Fannie Mae and Freddie Mac likely carrying higher rates and not solving supply constraints.