Trump’s 50-year-mortgage proposal

This week Trump proposed an options to mortgage your property over 50 years! What this means in 3 key points

1. Lower monthly payments, but a much higher lifetime cost

A 50-year mortgage reduces the payment slightly, but the total interest paid over time becomes significantly larger and the debt lasts far longer.

2. Slower equity growth and slower wealth building

Because most of the early payments go toward interest, homeowners build equity at a much slower pace, which delays long-term financial stability.

3. Does not address housing affordability and may push prices higher

Extending amortization increases borrowing power without increasing housing supply. This can lead to higher home prices rather than improved affordability.

What if the housing supply doesn’t increase — does making more loans really make housing more affordable, or just shift the burden? Also how would you feel as a home owner you're paying your mortgage even potentially in your 70s + 80s years old...

link:

https://thehill.com/business/5601078-trump-50-year-mortgage-housing-market/#:~:text=A%2050%2Dyear%20mortgage%20would,600%20payments%20over%20five%20decades.