Trump administration floats idea of 50-year mortgages to boost homebuying

WASHINGTON, D.C. - The Trump administration is pitching a new idea it says could help more Americans buy homes — but housing experts are already questioning whether it would truly make a difference.

What we know:

Under the proposal, the federal government would encourage banks and lenders to offer 50-year mortgages. The goal, officials say, is to lower monthly payments and help more first-time buyers qualify for loans.

But housing analysts say stretching out loan terms doesn’t fix the deeper issue — the country’s shortage of affordable homes.

What they're saying:

Danielle Hale, chief economist at Realtor.com, told FOX 5’s Tom Fitzgerald on On The Hill that while the idea might sound appealing, it doesn’t address the core of the affordability crisis.

"The housing market is really unaffordable and out of reach for a lot of people," Hale said. "The administration is trying to do something, but the real question is — is this the best solution? And I think the answer is no."

Dig deeper:

A recent Reuters analysis shows that while a 50-year mortgage could reduce monthly payments by about $270 on a $400,000 loan at 6.5%, it would nearly double the total interest paid — roughly $953,000 compared to $510,000 for a 30-year loan. 

Experts warn the longer term would slow equity growth and carry more risk for buyers later in life.

Financial analysts at NerdWallet point out that longer loans spread out payments but don’t make homes cheaper. Buyers still pay more over time, and rising home prices could continue to outpace wages without broader policy changes to increase housing supply.

What's next:

The administration says it will release more details in the coming weeks. Economists warn that any lasting fix will require addressing the nation’s housing shortage, not just the length of a mortgage.