Overview
- FHFA Director Bill Pulte promoted the 50-year term as a potential affordability tool and said the administration is working on options, with the agency also studying assumable and portable mortgages.
- Modeling shows only modest monthly relief versus 30-year loans but sharply higher lifetime costs, including LendingTree’s estimate of more than $1.1 million in interest on a $500,000 loan at 6.1% over 50 years.
- Realtor.com estimates an 86% jump in total interest for a 50-year loan, and a Bankrate example suggests higher rates on longer terms could shrink the monthly savings to roughly $56 on a $400,000 mortgage.
- A BadCredit.org survey found 45% of Americans would consider a 50-year mortgage, with support highest among Millennials at 54% and lower among Boomers at 29%, and backing stronger among Republicans than Democrats and independents.
- Kiplinger notes Dodd-Frank rules would likely render such loans non-qualified without policy changes, tax limits cap the mortgage interest deduction at $750,000 and require itemizing, and slower amortization raises equity and negative-equity risks.