Is Trump Proposing a 50-Year Mortgage?

President Donald Trump has proposed that the U.S. housing system adopt a 50-year mortgage term, signaling a potential shift in how home loans are structured. The announcement, made on Truth Social, compared the idea to Franklin D. Roosevelt’s creation of the 30-year mortgage during the New Deal era, suggesting that a 50-year option could make homes more affordable for millions of Americans.

The proposal quickly ignited debate among economists, housing experts, and lawmakers. Some view it as a creative solution to rising home costs, while others warn that it could inflate housing prices and increase long-term debt for buyers.

What We Know About the Trump 50-Year Mortgage Plan

The conversation began after President Trump posted an image showing himself alongside Roosevelt, captioned with “30-Year Mortgage” and “50-Year Mortgage.” Shortly after, Federal Housing Finance Agency Director Bill Pulte appeared to confirm the administration’s interest, calling it a “complete game changer” for the housing market.

However, the 50-year mortgage is currently not permitted under federal law. The Dodd-Frank Wall Street Consumer Protection Act, passed after the 2008 housing crash, includes the Qualified Mortgage rule that limits standard home loans to 30 years. To make a 50-year mortgage legally possible, Congress would need to amend or repeal parts of that legislation.

Supporters of the plan argue that a longer repayment period could lower monthly mortgage payments and help more Americans qualify for homes. A 50-year term would stretch payments across five decades, allowing borrowers to manage smaller monthly costs—an appealing option amid high interest rates and limited housing supply.

Critics, however, caution that the move could have serious downsides. Extending mortgage terms means borrowers would pay far more interest over time and build home equity at a much slower rate. Experts also warn that it could push housing demand even higher, worsening affordability by driving up prices rather than stabilizing them.

Expert Reactions and Economic Concerns

Analysts are split on whether a 50-year mortgage would genuinely benefit homebuyers. Some financial experts see it as a temporary relief strategy that could help ease monthly costs but not solve deeper affordability problems. Others say it could create new risks in the housing market similar to those seen before the 2008 crisis.

Economists note that affordability challenges stem from multiple factors, including low housing supply, high construction costs, and stagnant wages. Extending mortgage terms does not directly fix those issues—it may instead delay price corrections and prolong the affordability gap. Non-qualified mortgages, which already exist in niche markets, carry higher interest rates and are viewed as riskier for both borrowers and lenders.

Politically, the proposal aligns with President Trump’s ongoing efforts to present housing reform as a top domestic priority. On his first day in office, he signed an executive order focused on emergency price relief for homeowners and renters. The 50-year mortgage could serve as a symbolic next step in that push, though it faces major legal and regulatory barriers before becoming a reality.

In summary, while Trump’s 50-Year Mortgage proposal could lower monthly payments for some Americans, experts warn that it may also increase total costs and drive home prices higher—leaving affordability challenges unresolved.

FYI (keeping you in the loop)-

Q1: What is the Trump 50-Year Mortgage proposal?

It’s a plan by President Donald Trump to introduce a 50-year fixed-rate mortgage, intended to make monthly home payments smaller and expand access to homeownership.

Q2: Is a 50-year mortgage legal in the U.S. right now?

No. Under the Dodd-Frank Act, the Qualified Mortgage rule caps loan terms at 30 years. To implement 50-year mortgages, Congress would need to change the law.

Q3: Would this make homes cheaper?

Not necessarily. While it could reduce monthly payments, experts say it might also push housing prices higher and increase total interest costs over time.

Q4: Why do some experts oppose the plan?

They argue it could worsen affordability by inflating demand, delay price corrections, and limit homeowners’ equity growth, especially in the early decades of the loan.

Q5: What are the next steps for the proposal?

The Federal Housing Finance Agency is reviewing the idea, but it would require congressional action before becoming a legal mortgage option nationwide.