Could a 50-Year Mortgage Be Your Path to Homeownership? What Every Home Buyer Needs to Know

President Donald Trump recently floated the idea of introducing 50-year mortgages as a solution to the housing affordability crisis, with Federal Housing Finance Agency Director Bill Pulte calling it “a complete game changer.” According to reporting from CNN Business and other major news outlets, this proposal aims to make homeownership more accessible by significantly lowering monthly payments. But as with any major financial decision, there’s much more to consider beneath the surface.
Understanding the 50-Year Mortgage Concept
The 30-year mortgage has been the gold standard for American home buyers since the Great Depression era, when it was introduced under President Franklin D. Roosevelt’s administration to help Americans recover economically. Now, the Trump administration is proposing to extend that term by an additional 20 years, fundamentally changing how Americans could finance their homes.
As reported by CNN Business, the idea is straightforward: by spreading mortgage payments over 50 years instead of 30, monthly payments would decrease, potentially allowing more people to qualify for loans and enter the housing market. Kevin Hassett, director of Trump’s National Economic Council, explained that the proposal could “reduce the monthly payment quite a bit for a typical home for middle America by a few hundred dollars a month.”
The Housing Affordability Crisis
To understand why this proposal is gaining attention, we need to look at the current state of home affordability. According to the National Association of Realtors, the average age of first-time home buyers reached a record high of 40 years old in 2024—a stark indicator of how difficult it has become for younger Americans to purchase homes. That means the typical first-time buyer is closer to retirement than to their high school graduation.
Redfin data shows that the median U.S. household currently spends approximately 39% of their monthly income on mortgage repayments—well above what financial experts consider affordable. With mortgage rates remaining elevated and home prices continuing to climb, many would-be buyers find themselves priced out of the market entirely.
The Potential Benefits: Lower Monthly Payments
The primary appeal of a 50-year mortgage is clear: lower monthly payments. Let’s look at a practical example to understand the potential savings.
According to analysis from CNN Business and housing experts, consider a $450,000 home purchase. With a traditional 30-year mortgage, your monthly principal and interest payment would be approximately $2,771. With a 50-year mortgage at the same rate, that payment drops to around $2,452—a savings of roughly $319 per month.
For many families struggling to make ends meet, that extra $300-plus each month could mean:
    •    More breathing room in your monthly budget
    •    The ability to qualify for a home loan when you otherwise might not
    •    Money available for home repairs, savings, or other essential expenses
    •    A foot in the door to homeownership rather than continuing to rent
Phil Crescenzo, a vice president at Nation One Mortgage Corporation, offered a balanced perspective to CNN, noting that while homeowners would build equity more slowly than with a shorter loan, “a 50-year mortgage could still be better than renting and never accumulating any home equity at all.” He emphasized that it’s “a starting point” with the option to refinance later.
The Significant Drawbacks: The Cost of Time
While lower monthly payments sound attractive, housing experts warn that the long-term financial implications could be severe. The most significant concern? The total amount of interest you’ll pay over the life of the loan.
Using the same $450,000 home example from CNN Business reporting, here’s the stark reality:
    •    30-year mortgage: Total interest paid = approximately $547,000
    •    50-year mortgage: Total interest paid = approximately $1.02 million
That’s an additional $473,000 in interest—an 87% increase—just for the privilege of lower monthly payments. As Richard Green, a professor of finance and business economics at the University of Southern California’s Marshall School of Business, told CNN: “With a 50-year loan, you’re paying a teeny, tiny amount to your principal loan early on, so your interest payments are not going down very much.”
The Equity-Building Challenge
Another critical concern is how slowly you’ll build home equity with a 50-year mortgage. Equity—the portion of your home that you actually own—builds as you pay down your loan principal. With such a long loan term, you’re paying mostly interest in the early decades, meaning your equity grows at a snail’s pace.
Green warned that “it could be like 30 or 40 years before you’ve even paid half your mortgage principal under those circumstances.” This slow equity build-up creates several risks:
    •    Greater vulnerability if home prices decline
    •    Limited ability to tap home equity for emergencies
    •    Less wealth accumulation over time
    •    Potential to be “underwater” on your mortgage longer if the market dips
Interest Rate Uncertainties
It’s important to note that 50-year mortgages would likely carry higher interest rates than 30-year loans. Jeff DerGurahian, chief investment officer at loanDepot, explained to CNN that longer-term loans carry more risk for lenders, which typically translates to higher rates.
Currently, 15-year mortgages have lower rates than 30-year mortgages precisely because of this risk relationship. If 50-year mortgages follow this pattern, your monthly savings could shrink significantly, potentially from the estimated $319 per month to as little as $60, according to some analysts.
Will It Actually Improve Affordability?
Many housing experts question whether 50-year mortgages will truly solve the affordability crisis. The fundamental problem, they argue, isn’t just about monthly payments—it’s about housing supply.
Daryl Fairweather, chief economist at Redfin, pointed out that “it’s not going to solve the primary issue in the housing market.” Joel Berner, senior economist at Realtor.com, echoed this concern, noting that subsidizing home demand without increasing supply could lead to higher home prices that “negate the potential savings.”
The logic is simple: if more people can suddenly afford monthly payments thanks to 50-year mortgages, demand for homes increases. Without a corresponding increase in available homes, prices rise, potentially wiping out any benefit from lower monthly payments.
Legal and Practical Hurdles
The proposal faces significant obstacles before becoming reality. Under the Dodd-Frank Act, passed after the 2008 housing crisis, loan terms cannot exceed 30 years. Green noted that “you would need a lot of legislation to bring this about.”
Additionally, details remain sparse about how these loans would be structured, who would offer them, and what specific terms they would carry. The White House has stated that President Trump is “exploring new ways to improve housing affordability” but has not announced any official policy changes.
Who Might Benefit Most?
Despite the concerns, there are scenarios where a 50-year mortgage might make sense:
Younger buyers: Someone in their early to mid-twenties might view a 50-year mortgage as a way to enter the market early, with decades ahead to refinance or pay extra toward principal.
Temporary solution: Buyers who need immediate access to homeownership but expect their income to increase significantly could use a 50-year mortgage as a stepping stone, refinancing to a 30-year or 15-year loan later.
Versus renting: For those in high-rent markets where monthly rental costs exceed what a 50-year mortgage payment would be, building even slow equity might beat the alternative of building none at all.
Smart Strategies If 50-Year Mortgages Become Available
If this proposal becomes reality and you’re considering a 50-year mortgage, financial experts suggest these approaches:
    1.   Treat it as temporary: Plan to refinance to a shorter term when your financial situation improves or rates drop.
    2.   Make extra principal payments: Even small additional payments toward principal can dramatically reduce your total interest and shorten your loan term.
    3.   Compare total costs: Don’t just look at monthly payments—calculate the total cost of the loan over its lifetime.
    4.   Build an emergency fund: The slow equity growth means you’ll need other savings to fall back on.
    5.   Consider the opportunity cost: Could investing that monthly savings difference yield better long-term returns than slow equity growth?
What This Means for the Housing Market
The broader implications of widespread 50-year mortgages could reshape the housing landscape. Some economists worry about increased systemic risk—more borrowers taking longer to build equity could make the housing market more vulnerable to downturns. Others see it as an innovation that provides flexibility and options for diverse buyer situations.
What’s clear is that solving the housing affordability crisis requires multiple approaches. Building more homes, addressing zoning restrictions, and increasing housing supply are frequently cited as more fundamental solutions than simply extending loan terms.
The Bottom Line
The proposed 50-year mortgage represents a significant shift in how Americans might finance homeownership. While it could make monthly payments more manageable and open doors for some buyers currently locked out of the market, it comes with substantial long-term costs.
Before jumping into any extended mortgage term, prospective buyers should:
    •    Carefully calculate total interest costs over the loan’s life
    •    Consider how long they plan to own the home
    •    Explore all available mortgage options
    •    Consult with qualified mortgage professionals who can analyze their specific situation
    •    Understand that lower monthly payments don’t necessarily mean better affordability
As this proposal develops and more details emerge, working with an experienced mortgage broker becomes more important than ever. The right professional can help you navigate these new options, compare them against traditional mortgages, and find the solution that truly serves your long-term financial interests—not just your immediate monthly budget.
Homeownership remains one of the most significant financial decisions you’ll make. Whether the 50-year mortgage proves to be a genuine game-changer or a well-intentioned idea with unintended consequences remains to be seen. What matters most is that you make an informed decision based on your unique circumstances, long-term goals, and a clear understanding of both the benefits and the costs.
Ready to explore your mortgage options? Contact our team of experienced mortgage brokers to discuss whether a traditional 30-year mortgage, a 15-year loan, or future alternatives like the proposed 50-year mortgage might be right for your homeownership journey. We’re here to help you make the smartest decision for your financial future.

Article sources: This article draws on recent reporting from CNN Business, Fortune, Fox Business, The Hill, and NewsNation regarding the Trump administration’s proposed 50-year mortgage initiative. Special credit to CNN Business reporter analysis and expert insights from Richard Green (USC Marshall School of Business), Daryl Fairweather (Redfin), Joel Berner (Realtor.com), Jeff DerGurahian (loanDepot), and Phil Crescenzo (Nation One Mortgage Corporation).