Trump floats 50-year mortgages to make homebuying more affordable

Housing Market & Affordability - The Trump administration proposed a 50-year mortgage to improve home affordability [1] - FHFA is considering the proposal, potentially revolutionizing the mortgage market [1] - A longer mortgage term aims to reduce homeowners' monthly payments [1][2] Financial Implications of 50-Year Mortgage - Based on a median home price of $415,200 and a 63% interest rate, a 30-year mortgage results in $2,56 monthly payments [2] - Extending the mortgage to 50 years at the same interest rate would lower monthly payments to $1,823, saving $233 per month [3] - With a 50-year mortgage, homeowners build equity slower and pay 40% more interest to lenders [3] Regulatory & Market Considerations - Implementing a 50-year mortgage requires regulatory changes under the Dodd-Frank Act [4] - Changes to regulations could take up to a year [5] - Increasing housing supply is crucial to combat inflated home prices, regardless of mortgage rates [5]