WASHINGTON — President Donald Trump proposed a 50-year mortgage option on Truth Social to address the housing affordability crisis, aiming to lower monthly payments and make homeownership more accessible, officials reported.
The proposal targets cities like Houston, where the average home price is about $330,000. Traditional 30-year mortgages often result in higher monthly payments, making homeownership challenging. Extending the loan period to 50 years would reduce monthly payments but increase total interest costs.
Financial experts outlined potential impacts. A 30-year mortgage with a 6.3% interest rate and 15% down payment would accrue approximately $344,538 in interest, totaling $625,038 in payments, excluding property taxes, insurance, and private mortgage insurance. A 50-year mortgage under the same terms would generate $642,975 in interest, bringing total payments to $923,475.
Experts cautioned that while monthly payments would be lower, slower equity growth and higher long-term costs could create financial challenges. Rooshin Joseph, Senior Mortgage Broker at Peak Wholesale Mortgage, stated, “Monthly payments will be lower, but the total interest paid will be significantly higher.”
Dr. Claudius Claiborne, acting Dean of Texas Southern University’s JHJ School of Business, noted the extended repayment period could make paying off the mortgage difficult. He added that lower payments might enable some individuals to own instead of rent, but full ownership may take decades, with debt potentially passing to heirs if the homeowner does not live to complete the loan.
Homeowners and financial analysts are weighing the advantages and disadvantages of the 50-year mortgage. The plan could make homeownership attainable today but may result in higher interest costs and slower wealth accumulation over time.
