I’m a Real Estate Expert: Here’s Why I Think Trump’s 50-Year Mortgage Idea Won’t Work

Core Viewpoint - The proposal of a 50-year mortgage by President Donald Trump aims to make home ownership more affordable by lowering monthly payments, especially in the context of high home prices and elevated mortgage rates [1]. Group 1: Mortgage Structure and Implications - A 50-year mortgage would reduce monthly payments by extending the loan term compared to the standard 30-year mortgage [2]. - Experts argue that most homeowners may never pay off a 50-year mortgage due to life expectancy concerns, with the median age of first-time homebuyers projected to be 40 years in 2025, while the average life expectancy in the U.S. is 78.4 years [3][4]. - A couple in their mid-30s entering a 50-year mortgage would be making payments into their 80s, raising concerns about financial stability during retirement years [5]. Group 2: Market Considerations - The 50-year mortgage is not necessarily about residing in the same home for the entire duration, as many homeowners do not stay in their homes for the full term of the mortgage [6]. - The broader ecosystem of the housing market could benefit from lower mortgage payments associated with a 50-year mortgage structure [6].