Trump’s New Mortgage Problem
As housing prices remain elevated nationwide, officials in President Trump’s administration say new ideas are being explored to help Americans achieve homeownership — but caution that major changes require careful review.
On Sunday, Scott Turner, Secretary of the Department of Housing and Urban Development, said more analysis is needed before any decision is made on a proposed 50-year mortgage option.
Speaking on Fox & Friends Weekend, Turner stressed that the concept is still in its early stages.
“It’s very early,” Turner said. “I think more research needs to be done on the 50-year mortgage.”
Trump Looks for Solutions to Rising Housing Costs
Last month, Donald Trump publicly voiced support for examining longer mortgage terms as one possible way to lower monthly payments for homebuyers struggling with affordability.
Under the proposal, a 50-year mortgage would extend repayment well beyond the traditional 30-year loan, spreading payments over a longer period to reduce monthly costs.
The idea has also gained attention within the Federal Housing Finance Agency. Its director, Bill Pulte, said in November that the agency is actively working on potential options involving extended mortgage terms.
Turner noted that the 50-year mortgage is only one of several proposals under consideration as the administration evaluates ways to expand responsible homeownership.
“The president and leaders across the administration will determine the most secure and effective path to help Americans afford a home,” Turner said.
How a 50-Year Mortgage Would Affect Homebuyers
A standard 30-year mortgage requires 360 monthly payments. A 50-year mortgage would stretch that number to 600 payments, potentially lowering monthly obligations but increasing the total amount paid over time.
The proposal comes as housing affordability continues to worsen. Many younger Americans now believe owning a home is financially unrealistic, while retirees and fixed-income households are also feeling pressure from rising shelter costs.
According to the Bureau of Labor Statistics, shelter prices increased 3 percent over the past year, outpacing the overall inflation rate of 2.7 percent. The U.S. Census Bureau reported that median monthly housing costs for homeowners with mortgages rose nearly 4 percent from 2023 to 2024.
Mortgage Industry Raises Caution Flags
Not everyone is convinced that longer mortgage terms are the answer.
A spokesperson for the Mortgage Bankers Association warned that extending loan terms could expose borrowers to greater long-term risk. While monthly payments may be lower, equity would build more slowly, and higher interest rates could offset affordability gains.
Industry experts caution that if home price growth slows, homeowners with ultra-long mortgages could be more vulnerable during economic downturns.
What Comes Next
Trump administration officials say all housing policy options remain under review, but emphasize that protecting homeowners and maintaining market stability will be key factors in any final decision.
As housing costs continue to strain family budgets, the debate over how best to restore affordable homeownership is expected to intensify.
