https://youtube.com/shorts/lwU_SWSH2yw?si=V7knukkiuIRU-syl
Here’s a short and sweet summary of Donald Trump’s proposed 50-year mortgage idea:
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The idea: Extend the standard 30-year mortgage to a 50-year term to reduce monthly payments and make home-ownership more accessible.
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How it works: Longer term → lower monthly payment for the same home price.
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The catch: Because you’re borrowing longer, you pay much more in total interest and build equity much more slowly.
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Legal/structural issues: Current regulations cap many mortgages at 30 years and financing for a 50-year loan would require major changes
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Status: It is a proposal/idea—not yet a formal policy—with mixed reactions from experts and political figures.
🔢 Sample numbers
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On a home price of ~$415,200 (U.S. median) with a 10 % down payment, a 30-year mortgage at ~6.17 % interest would yield a monthly payment of about $2,288.
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The same home, if financed over 50 years at the same rate (assuming no rate penalty), would drop the payment to about $2,022/month. But over the full life of the 50-year loan the extra interest adds up – one analysis estimates roughly $389,000 more in interest compared to the 30-year version for a median-home scenario.
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Another example: On a ~$348,000 mortgage at 6% interest, monthly payment drops from ~$2,086 for 30 yrs to ~$1,832 for 50 yrs. But total interest paid: ~$403,117 versus ~$751,113.
📉 What this means for you (or a typical buyer)
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✅ Lower monthly payments → more “affordable” in the short term.
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❌ Much slower equity buildup: With a 50-year term, you won’t build meaningful equity for many years (decades) compared to a 30-year term.
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❌ Higher total cost: You’ll pay significantly more interest over the life of the loan.
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❌ Risk of debt lasting into retirement: If you buy at ~40 years old (the median first-time buyer age) a 50-yr term means you'd be ~90 by payoff — well past typical retirement age.
It's in the very early discussion stages so ..... we will wait and see.
