Overview
- FHFA Director Bill Pulte floated the ultra-long loan and President Trump endorsed exploring it, with Pulte saying the administration is working on the idea.
- Bankrate estimates a 50-year loan would likely carry a higher rate than a 30-year, cutting a $400,000 borrower’s payment by only about $56 a month if the rate rose from 6.25% to 7%.
- LendingTree’s calculations show interest costs more than doubling on a $500,000 mortgage at 6.1%, rising from about $590,791 over 30 years to over $1.1 million over 50 years.
- Kiplinger reports Dodd‑Frank rules and current GSE limits do not accommodate 50‑year terms, meaning such loans would likely be non‑qualified and lack federal backing unless rules change.
- A BadCredit.org survey reported by Newsweek found 45% of Americans would consider a 50‑year mortgage, including 54% of Millennials, even as critics warn it slows equity buildup and does not fix housing supply.