WASHINGTON – President Trump on Saturday appeared to signal support for a new 50-year mortgage program, a move he says could make homeownership more affordable by lowering monthly payments.
Join our WhatsApp group
Subscribe to our Daily Roundup Email
The idea surfaced when Trump posted an image on Truth Social showing President Franklin D. Roosevelt under the caption “30-year mortgage” and himself under “50-year mortgage.” Shortly after, FHFA Director Bill Pulte confirmed on X: “Thanks to President Trump, we are indeed working on The 50-Year Mortgage – a complete game changer.”
While the White House has yet to release formal details, Trump has made housing affordability a top issue of his administration. On his first day in office, he signed an executive order for emergency housing price relief and has repeatedly pressured Federal Reserve Chair Jerome Powell to lower interest rates.
According to Fannie Mae’s mortgage calculator, at a rate of 6.575% with 20% down, a $400,000 home would cost about $2,038 a month on a 30-year fixed loan, $1,891 on a 40-year term, and $1,822 on a 50-year term.
However, while longer mortgages lower monthly payments, they also slow homeowners’ equity buildup and extend debt far longer. Housing analyst Logan Mohtashami cautioned that the policy would “subsidize more demand” rather than solve affordability issues, saying “the 30-year fixed is perfectly fine as is.”
A major obstacle remains: under current law, 50-year mortgages are prohibited. The Dodd-Frank Wall Street Reform and Consumer Protection Act limits Qualified Mortgages to 30 years. For Trump’s proposal to move forward, that regulation would need to change — or lenders would have to offer such loans as higher-rate, non-qualified mortgages.
Follow VINnews for Breaking News Updates
