The 50-year mortgage would cost you nearly $400k more than the standard, AP analysis says

Core Viewpoint - The White House is considering a 50-year mortgage to address the home affordability crisis, but this proposal has faced criticism for not addressing fundamental issues in the housing market, such as supply shortages and high interest rates [1][8]. Mortgage Structure and Financial Implications - A 50-year mortgage would lower monthly payments compared to a 30-year mortgage, with an example showing a payment of $2,022 for a 50-year mortgage versus $2,288 for a 30-year mortgage based on an average home price of $415,200 and a 10% down payment [4][5]. - However, borrowers would pay approximately $389,000 more in interest over the life of a 50-year mortgage compared to a 30-year mortgage, significantly slowing equity accumulation [6][7]. Housing Market Challenges - The introduction of a 50-year mortgage does not address the critical issue of housing supply, which remains a significant barrier to affordability [8]. - Rising costs of construction materials and labor shortages, exacerbated by tariffs and immigration policies, further complicate the housing supply situation [9]. Demographic Considerations - The average age of first-time homebuyers is around 40 years, making a 50-year mortgage challenging to underwrite, as it would extend the loan term beyond the average life expectancy of 79 years [12][13]. Legislative and Regulatory Context - Current regulations under the Dodd-Frank Act prevent Fannie Mae and Freddie Mac from insuring mortgages longer than 30 years, meaning a 50-year mortgage would be classified as a "non-qualifying mortgage," complicating its marketability [17].