Trump's 2025 50-Year Mortgage Proposal

In September 2025, President Trump and FHFA Director Bill Pulte announced they are "working on" 50-year mortgages as a solution to America's housing affordability crisis. This comprehensive analysis breaks down the proposal, expert reactions, implementation challenges, and what potential homebuyers need to know.

⚠️ Current Status: Proposal Only

As of September 2025, no U.S. lenders currently offer 50-year mortgages. This remains a policy proposal under development by the Federal Housing Finance Agency (FHFA) and faces substantial regulatory barriers under the Dodd-Frank Act.

The September 2025 Announcement

What Was Said

Bill Pulte

FHFA Director (via X/Twitter)

"Thanks to President Trump, we are indeed working on The 50-year Mortgage – a complete game changer."

Source: Fortune, "Move over, 30-year mortgage. The Trump White House is working on a 50-year option," November 9, 2025

The proposal aims to address unprecedented affordability challenges in the U.S. housing market:

$415,200

Median Home Price (2025)

$112,131

Annual Income Needed to Qualify

40 years

Median First-Time Buyer Age

21%

First-Time Buyers (Historic Low)

Sources: Fortune (Nov 2025); NAR "First-Time Home Buyer Share Falls to Historic Low," Nov 4, 2025

The Affordability Crisis Context

The proposal comes amid a severe housing affordability crisis that has fundamentally restructured the American homebuying landscape:

Median first-time homebuyer age: 40 years – up from 28 in 1991
Typical households spend 39% of income on housing
Home prices up 60% since 2019
Median home price: $412,500 – 5x median household income (~$87,000)

Source: Joint Center for Housing Studies (Harvard), "The State of the Nation's Housing 2025," June 2025

First-time buyers have contracted by 50% since 2007, representing only 21% of purchases in 2025 compared to historic norms of 40-45%. The Trump administration positions 50-year mortgages as one tool to help reverse this trend.

The Financial Mathematics

Monthly Payment Savings

UBS Securities analyst John Lovallo provided detailed calculations for a typical scenario:

Example: Median $420,000 Home with 12% Down Payment

Loan Amount: $369,600

Term	Interest Rate	Monthly Payment	Monthly Savings
30-year	6.33%	$2,295	—
50-year	6.83%	$2,176	$119/month

Source: Fortune, "Trump's 50-year mortgage would save you about $119 a month while doubling interest," November 12, 2025

The Total Cost Trade-Off

Critical Finding: Interest Costs Nearly Double

Additional lifetime interest: $389,000

While monthly payments drop by $119, the extended 50-year term means paying an additional $389,000 in interest over the life of the loan – effectively doubling the interest cost compared to a 30-year mortgage.

Multiple analyses from different sources confirm similar findings:

Loan Amount	30-Year Interest	50-Year Interest	Additional Cost	% Increase
$450,000	$547,000	$1,020,000	$473,000	87%
$400,000	$438,156	$816,396	$378,240	86%
$332,000	$402,000	$749,000	$347,000	86%

Sources: CNN Business (Nov 11, 2025); Realtor.com (Nov 2025); Yahoo Finance (Nov 2025)

Expert Consensus: Overwhelmingly Cautious

Financial advisors, economists, and housing policy experts have responded with significant concerns about the proposal:

Richard Green

Professor, USC Marshall School of Business

"This is not a good idea. The monthly payment savings would be really small. At the same time, you're putting people at risk, because it takes a really long time for them to start paying down their loan."

Source: CNN Business, "Trump just floated a 50-year mortgage. Is that a good idea?" November 11, 2025

Green notes that on a $450,000 home at 6.25%, a 30-year mortgage costs $547,000 in interest while a 50-year costs $1.02 million—87% more. "It could be like 30 or 40 years before you've even paid half your mortgage (principal)."

Joel Berner

Senior Economic Research Analyst, Realtor.com

"The drawbacks are that a 50-year mortgage results in almost double the interest payments and a longer path to meaningful home equity. Subsidizing home demand without increasing supply could increase home prices, negating potential savings."

Source: Fox Business, "Trump's 50-year mortgage proposal: What would it mean for homebuyers?" September 2025

David Bahnsen

Founder & CIO, The Bahnsen Group

"To the extent a longer maturity mortgage lowers the monthly payment, this gets priced into the sticker price of the home and makes affordability worse, not better."

Political Response

The proposal has generated bipartisan skepticism, with criticism even from within President Trump's own party:

Rep. Marjorie Taylor Greene (R-GA)

"It will ultimately reward the banks, mortgage lenders and home builders while people pay far more in interest over time and die before they ever pay off their home. In debt forever, in debt for life!"

Rep. Thomas Massie (R-KY)

"How is 'here, enjoy this 50 year mortgage' different from 'you will own nothing and you will like it.'"

Regulatory Barriers and Implementation Timeline

The Dodd-Frank Obstacle

The biggest barrier to implementation is the Dodd-Frank Act's Qualified Mortgage (QM) rules:

Current QM Standards (CFPB)

Maximum loan term: 30 years
No interest-only periods
No negative amortization
No balloon payments
Verified income, assets, employment, and debts

Loans exceeding 30 years are NOT Qualified Mortgages under current law.

Source: CFPB, "What is a Qualified Mortgage?" January 7, 2025

What Needs to Happen

Congressional action required to amend Dodd-Frank Act
FHFA regulatory changes to allow Fannie Mae/Freddie Mac purchases
Lender adoption and secondary market development
Implementation period: 6-12+ months minimum

Mortgage Bankers Association

"Lender willingness likely muted given Fannie Mae and Freddie Mac are currently prevented from buying non-QM mortgages."

Until these regulatory changes occur, 50-year mortgages would remain classified as Non-QM (non-qualified mortgages), carrying:

Higher interest rates (0.42-0.75% premium)
No legal safe harbor protections
Cannot be sold to GSEs
Severely limited secondary market
Reduced lender availability

Who Would Benefit?

Potential Beneficiaries

Young buyers (late 20s-early 30s) with long time horizons
High DTI ratio borrowers who can't qualify for 30-year
High-cost markets where entry barriers are extreme
Earners expecting income growth who plan to refinance later
Strategic users who will make extra payments

Poor Fit For

Age 40+ buyers (would pay until age 90)
Near-retirees seeking mortgage payoff before retirement
Those planning to stay long-term without refinancing
Financially stable buyers who can afford 30-year terms
Markets with flat/declining values

What Should Homebuyers Do Now?

Recommended Action Plan

Don't wait for 50-year mortgages. With regulatory barriers and uncertain timeline, waiting could mean missing current opportunities.
Explore current alternatives:
- 40-year mortgages (available from select lenders as Non-QM)
- Down payment assistance programs
- First-time homebuyer programs
- FHA loans (3.5% down)
- Conventional 97% LTV loans
Improve qualification factors:
- Boost credit score to 740+ for best rates
- Reduce debt-to-income ratio below 43%
- Save larger down payment to reduce loan amount
- Shop multiple lenders for best terms
Run the numbers. Use mortgage calculators to compare 30-year, 40-year, and hypothetical 50-year scenarios for YOUR situation.
Monitor policy developments. Follow FHFA announcements and congressional action on Dodd-Frank amendments.

The Bottom Line

President Trump's 50-year mortgage proposal addresses a real crisis—housing affordability has reached historic lows, and traditional homebuying timelines have fundamentally shifted. However, the solution comes with significant trade-offs:

Key Takeaways:

✅ Monthly savings: $119-$233 depending on loan size
⚠️ Lifetime cost: $336,000-$473,000 additional interest
⚠️ Equity building: 80% slower in first 10-20 years
❌ Regulatory barriers: Congressional action required
❓ Timeline: 6-12+ months minimum, if approved
⚠️ Expert consensus: Significant concerns about long-term impacts

For some younger, strategic borrowers in high-cost markets, a 50-year mortgage could provide market entry that would otherwise be impossible. But the overwhelming expert consensus suggests this addresses demand without solving the fundamental supply shortage—potentially inflating prices further and creating lifetime debt burdens.

As this policy develops through 2025 and beyond, potential homebuyers should focus on improving their financial position, exploring current alternatives, and making informed decisions based on total costs, not just monthly payments.

Stay Informed

This is a developing story. Check back for updates as the proposal moves through the regulatory process and more details emerge from the FHFA and Congress.

Key Sources for Updates:

FHFA.gov – Official Federal Housing Finance Agency announcements
CFPB.gov – Consumer Financial Protection Bureau regulatory updates
Congress.gov – Track legislative proposals related to Dodd-Frank amendments
FiftyYearTerm.com – We'll continue monitoring and analyzing developments