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(NEXSTAR) – As prospective home buyers contemplate the potential impact of a 50-year mortgage in 20 major U.S. cities, many may lean toward traditional financing, even if President Trump’s proposal gains traction.
“Thanks to President Trump, we are indeed working on The 50 Year Mortgage – a complete game changer,” stated Bill Pulte, the Director of the Federal Housing Finance Agency (FHFA), following Trump’s mention of the concept on Truth Social.
Advocates of the proposal are enthusiastic about the possibility of reduced monthly payments, as the total cost would be spread over 600 installments rather than the 360 payments typical of a 30-year mortgage. Annually, this would translate to savings exceeding $2,000 due to lower payments.
Critics, however, argue that the extended loan duration poses greater risks to banks, which might respond by increasing interest rates. Furthermore, the total interest accumulated over a 50-year mortgage would be approximately double what one would pay with a 30-year loan.
Just how much interest are we talking about?
Zoocasa, a real estate firm, notes that the exact figures could fluctuate significantly depending on the housing market, having analyzed these potential outcomes based on average home prices in 20 major U.S. cities.
| City | Median Home Price | 30-Year Mortgage Monthly Payment | 50-Year Mortgage Monthly Payment | 30-Year Total Interest Paid | 50-Year Total Interest Paid |
|---|---|---|---|---|---|
| San Francisco, CA | $1,315,000 | $6,457 | $5,710 | $1,272,460 | $2,373,744 |
| San Diego, CA | $1,009,500 | $4,957 | $4,383 | $976,843 | $1,822,277 |
| Los Angeles, CA | $954,100 | $4,685 | $4,143 | $923,235 | $1,722,273 |
| Boston, MA | $803,400 | $3,945 | $3,488 | $777,410 | $1,450,240 |
| New York, NY | $774,500 | $3,803 | $3,363 | $749,445 | $1,398,072 |
| Washington, DC | $657,200 | $3,227 | $2,853 | $635,940 | $1,186,330 |
| Denver, CO | $651,900 | $3,201 | $2,830 | $630,811 | $1,176,763 |
| Miami, FL | $639,000 | $3,138 | $2,774 | $618,328 | $1,153,477 |
| Phoenix, AZ | $472,200 | $2,319 | $2,050 | $456,924 | $852,382 |
| Charlotte, NC | $429,600 | $2,109 | $1,865 | $415,702 | $775,483 |
| National | $426,800 | $2,096 | $1,853 | $412,993 | $770,429 |
| Philadelphia, PA | $410,300 | $2,015 | $1,781 | $397,027 | $740,644 |
| Chicago, IL | $406,800 | $1,997 | $1,766 | $393,640 | $734,326 |
| Minneapolis, MN | $405,400 | $1,991 | $1,760 | $392,285 | $731,799 |
| Tampa, FL | $400,000 | $1,964 | $1,737 | $387,060 | $722,051 |
| Houston, TX | $341,600 | $1,677 | $1,483 | $330,549 | $616,632 |
Zoocasa calculated the interest amounts using median home prices from the National Association of Realtors, assuming a 6.22% fixed rate and a 20% down payment.
See the Zoocasa analysis for more on the methodology and the complete list of real estate markets.
America’s housing issues run deep
A 50-year mortgage does nothing to solve one critical issue when it comes to housing affordability — the lack of supply of homes. States like California and cities like New York have recently passed legislation or made regulatory changes to allow builders to build homes faster with less regulatory red tape.
There’s also the raw cost of homebuilding in the country. Products such as steel, lumber, concrete, copper and plastics that go into home construction are now subject to tariffs under President Trump. Further, many construction jobs were being done by undocumented workers, particularly in the Southwest, where deportations are impacting the ability for homebuilders to find enough labor to build homes.
“Many of the big things that would address supply right now are going in the wrong direction,” said Mike Konczal, senior director of policy and research at the Economic Security Project.”
Pulte said earlier this month on X that the introduction of a 50-year mortgage was just a “potential weapon,” among other solutions the White House has considered to combat high housing prices.
The Associated Press contributed to this report.
