Trump proposes 50-year mortgage

[Nithavela]

https://www.cnbc.com/2025/11/10/trump-proposes-50-year-mortgage-but-homeowner-savings-could-be-minimal.html

In another attempt to make homebuying more affordable, President Donald Trump floated the idea of a 50-year mortgage in a social media post. In response, Federal Housing Finance Agency director Bill Pulte, who oversees Fannie Mae and Freddie Mac, posted that they are “working on it,” and that it would be, “a complete game-changer.”

I think this is a wonderful idea. You get to save some money per month, and when you die halfway into paying back your mortgage, your legacy lives on.

 

[Bradskii]

https://www.cnbc.com/2025/11/10/trump-proposes-50-year-mortgage-but-homeowner-savings-could-be-minimal.html

I think this is a wonderful idea. You get to save some money per month, and when you die halfway into paying back your mortgage, your legacy lives on.

How in heaven's name is that going to work? Buy a house when you're 25 and you're still paying it off when you're 75? Who is going to take over the payments when you retire? Your kids'll probably be only half way through paying for theirs.

You'd get a little extra to put towards a house, but then so will anyone else doing the same, so everyone is spending more to get the same property.

This is probably a little too technical for Trump to understand, but to lower the cost of something, you supply more of it. You don't lend people more money to spend on it. Especially when it has to be paid back over a literal lifetime.

 

[rjs330]

This is honestly a terrible idea. The last thing we need is to give banks more interest money and have people not get any equity into a house.

Maybe everyone should just be provided with a free 1200 square ft home.

 

[DaisyDay]

https://www.cnbc.com/2025/11/10/trump-proposes-50-year-mortgage-but-homeowner-savings-could-be-minimal.html

I think this is a wonderful idea. You get to save some money per month, and when you die halfway into paying back your mortgage, your legacy lives on.

The only upside for consumers would be if there were no prepayment penalties. If you pay the lower amount for the first few years, then pay the loan off in 15 years, specifying that the overpayment goes towards the principal, this could be a good deal.

 

[Maria Billingsley]

https://www.cnbc.com/2025/11/10/trump-proposes-50-year-mortgage-but-homeowner-savings-could-be-minimal.html

I think this is a wonderful idea. You get to save some money per month, and when you die halfway into paying back your mortgage, your legacy lives on.

Unfortunately a buyer does not save that much but they do pay an extraordinary amount of interest and the option of paying down your principle goes out the door. Homes are not appreciating like they used to so you're basically renting your home from the lender with all the responsibility of upkeep. Granted writing off the interest is helpful but one just needs to do the math to see what a bad idea this is in the long run.

 

[rambot]

On this surface this seems like no brainer dumb but im not an economist and have questions..

In canada we are able to change your amortization rate when you renew. Is that possible in the US?

As mentioned if there are Avenues to make principle payments easier that would be good.


This sadly appears 100% predatory though. But either you have to lower the price of a house or people need higher paycheques to afford houses. I don't think anyone's excited for those options.

 

[chevyontheriver]

https://www.cnbc.com/2025/11/10/trump-proposes-50-year-mortgage-but-homeowner-savings-could-be-minimal.html

I think this is a wonderful idea. You get to save some money per month, and when you die halfway into paying back your mortgage, your legacy lives on.

It seems like a great idea ... for banksters.

 

[essentialsaltes]

Apparently, Bill Pulte waved this image under Trump's nose, and 10 minutes later Trump was Truthing it out. White House staff are dismayed, as last-person-to-talk-to-him syndrome strikes again.​

 

[Oompa Loompa]

How in heaven's name is that going to work? Buy a house when you're 25 and you're still paying it off when you're 75? Who is going to take over the payments when you retire? Your kids'll probably be only half way through paying for theirs.

You'd get a little extra to put towards a house, but then so will anyone else doing the same, so everyone is spending more to get the same property.

This is probably a little too technical for Trump to understand, but to lower the cost of something, you supply more of it. You don't lend people more money to spend on it. Especially when it has to be paid back over a literal lifetime.

It is like paying rent, but cheaper.

 

[Nithavela]

Apparently, Bill Pulte waved this image under Trump's nose, and 10 minutes later Trump was Truthing it out. White House staff are dismayed, as last-person-to-talk-to-him syndrome strikes again.​

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I'm surprised he didn't go for 60 years to double up on Roosevelt.

 

[durangodawood]

This president does like using indebtedness as a policy tool.

 

[probinson]

The only way this would be beneficial is if you took out the longer term to get lower monthly payments but paid more than your minimum payment. It would also depend on the interest rates for each term. Unfortunately, if this were an option, a lot of people would probably just pay the minimum and end up paying FAR more in interest.

Bonus tip: If you get paid bi-weekly, split your mortgage payment in half and pay half every other week. This will results in 26 half payments, or 13 full payments, meaning that you will make one full extra payment toward your principal each year. In my case, it will result in me paying off my 30-year mortgage in 22 years.

 

[iluvatar5150]

Of all the good things FDR did, that's the one he wants to top?

 

[Aryeh Jay]

Of all the good things FDR did, that's the one he wants to top?

It's hard to top the internment camps.

 

[iluvatar5150]

It's hard to top the internment camps.

He hasn't even tried!

 

[GoldenBoy89]

He hasn't even tried!

Well he did try but it appears water lilies have more rights than people in federal detention do.

 

[DaisyDay]

Unfortunately a buyer does not save that much but they do pay an extraordinary amount of interest and the option of paying down your principle goes out the door.

That's true only if you stick to the payment plan provided, but - provided that there is no prepayment penalty, critical - if you pay more than the monthly amount AND stipulate that the overage goes towards the principal and not the interest, this could work out in the borrower's favor.

I remember a stupid scam the banks used to [?] run which was to, for a fee, restructure your monthly loan to a bi-weekly one or a 30-year to a 15-year. That way, not only would you be out the ridiculous fee but you'd be locked into the higher or more frequent payments with penalties attached when you could just do the prepayments yourself for free.

 

[rjs330]

That's true only if you stick to the payment plan provided, but - provided that there is no prepayment penalty,

Its my understanding that most mortgages do not have prepayment penalties. Ive owned four different houses and also had several different re-financing and every one of them had no pre-payment penalty. So is that really a common thing to have one?

Or are you just concerned lenders would go to that if they did 50 years?