President Donald Trump is aiming to make home ownership affordable with his 50-year mortgage plans.
But the plan was met with severe backlash, even from Trump’s own party.
“The idea behind the 15- and 30-year mortgage is that you eventually own the home you live in, whereas the 50-year mortgage abandons this pretense altogether and fully embraces the idea of housing as a speculative asset. Not good, unless you’re a bank,” conservative activist Christopher Rufo said on X.
The Financial Times reported that a home priced at $426,000 with a 15% down payment in a 50-year mortgage will double lifetime interest payments from $448,000 to $918,000, but the monthly payment will be reduced by $120.
According to an analysis by real estate brokerage firm Redfin, homeowners now typically live in their homes for about 12 years, which has almost doubled from 6.5 years in 2005. However, if they took out a 50-year mortgage plan, it would take them much longer to build equity for their property.
“I think in a world where this product exists, a lot of people might sign up for it initially and then try to refinance later,” Redfin Chief Economist Daryl Fairweather told NPR.
Even with speculation, younger people have found the plan to be an opportunity for them to own instead of rent.
“All it means is you pay less per month,” Trump said on Fox News. “Pay it over a longer period of time, it’s not like a big factor, it might help a little bit.”
