Gen Xer Says 'I Did The Math' And On A 50-Year Mortgage You'll Pay $1.7 Million For a $480K House — 'This Is Insanity. Don't Let Your Children Sign Up.'

Core Viewpoint - President Trump's proposal of a 50-year mortgage aims to make homeownership more affordable for Americans, but it raises significant concerns regarding long-term financial implications and generational debt [2][3]. Group 1: Mortgage Proposal - The concept of a 50-year mortgage was introduced by President Trump, suggesting it could help buyers afford homes by extending the mortgage term [2]. - Bill Pulte, Director of the Federal Housing Finance Agency, confirmed that they are working on the 50-year mortgage, labeling it a "complete game changer" [2]. Group 2: Financial Implications - A calculation on a $480,000 mortgage at 7% interest revealed that over 50 years, the borrower would pay $1,732,863 for the house, with $1,252,862 in interest alone [3]. - After 20 years, the borrower would only have 10% equity, raising concerns about the long-term financial burden [3]. Group 3: Public Reaction - Many individuals expressed skepticism about the 50-year mortgage, with some labeling it a "rent-to-own scam" that could trap buyers in generational debt [3]. - While some noted that a 50-year mortgage could lower monthly payments by approximately $150 compared to a 30-year term, they acknowledged the significant increase in total interest paid and slow equity accumulation [3]. Group 4: Uncertainties - Questions remain about the feasibility of lenders offering these loans widely and the implications for borrowers who may pass away before the mortgage term ends [3].