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Is the key to making homeownership more affordable just giving buyers more time?
That’s the pitch from President Donald Trump, who proposed creating a 50-year mortgage. The social media post touting the idea also got a cosign from Federal Housing Finance Agency director Bill Pulte. He said a 50-year mortgage is being worked on and would be “a complete game changer.”
The concept aims to address the growing unaffordability of homeownership, particularly for young people. BI’s James Rodriguez has covered this topic extensively, recently writing about how the age of the first-time homebuyer continues to rise. In 2025, the median age for first-time buyers is 40, whereas it was 31 a decade ago.
A benefit of a 50-year mortgage would be a lower monthly payment. Take a $435,000 house, which is roughly the median price of a home these days. Putting 20% down gets you a $348,000 mortgage. At a 6% interest rate, a 30-year fixed mortgage would mean a monthly payment of $2,086. On a 50-year fixed, that payment drops to $1,832.
But it comes with a massive catch: Longer mortgage terms mean borrowers build equity in their house a lot slower and pay a considerable amount more in interest.
The interest paid on that $348,000 mortgage over 30 years: $403,117. For a 50-year mortgage: $751,113.
The 50-year mortgage isn’t Trump’s only quick-fix idea.
The president also pitched using the revenue from tariffs to send cash to “everyone” except “high-income people.” In a post on Truth Social, Trump said Americans could receive a dividend payment of “at least” $2,000.
It’s an idea Trump had previously floated last month, and comes as the Supreme Court is reviewing the legality of some of his tariffs.
As much as we’d all like a bit more cash, the reality is the dividends could end up hurting Americans in the long run.
Not unlike the pandemic-era relief checks, the money could spike demand for goods and ultimately lead to higher prices. The stimulus may also prompt the Federal Reserve to reconsider future interest-rate cuts, as it’ll be concerned about another spike in inflation.
Both ideas are far from a shoo-in, though. Under current banking laws, a 50-year mortgage is actually illegal. Any tariff refund would also require congressional approval.
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