Overview
- President Trump publicly proposed exploring a 50-year home loan, with the FHFA’s Bill Pulte calling it a potential game changer, though the White House offered no implementation details.
- Trump characterized the concept as reducing monthly payments and “not a big deal,” while National Economic Council Director Kevin Hassett said Congress may need to act, signaling no imminent rollout.
- Examples show modestly lower monthly payments but dramatically higher total interest, with CNN’s calculation on a $450,000 loan showing roughly $2,452 per month over 50 years and about $1.02 million in lifetime interest.
- Housing economists warn borrowers would build equity far more slowly, face greater default and negative-equity risks, and likely pay higher rates than on 30-year loans due to added lender risk.
- Analysts caution that boosting purchasing power without adding homes could lift prices, and legal constraints from Dodd‑Frank’s 30‑year cap mean substantial regulatory changes or legislation would be required.