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Amidst ongoing discussions on making home ownership more attainable, a novel idea is gaining traction: the introduction of a 50-year mortgage.
INDIANAPOLIS — This week, talks have surfaced regarding the potential implementation of a half-century mortgage term. The conversation was sparked by a post from former President Donald Trump on Truth Social.
In his post, Trump shared a photo juxtaposing President Franklin Roosevelt, known for the introduction of the 30-year mortgage, with himself. The image of Roosevelt is captioned “30-year mortgage,” while Trump’s image is labeled “50-year mortgage.”
The proposed aim of this extended mortgage term is to make housing more affordable for prospective buyers.
For many, purchasing a reasonably priced home seems increasingly elusive. Currently, the average age for first-time homebuyers has risen to 40 years.
Homebuying in 2025
Buying an affordable house feels out of reach for many. The median age of a first-time homebuyer is 40-years-old.
Audrey McClelland, a loan officer with GVC Mortgage, says a lot of people are trying to strike a balance between two financial goals.
“They’re trying to pay things down while save (money),” McClelland said.
McClelland explains while a longer-term mortgage could be a tool in the toolbox, it comes with caveats.
What’s the cost?
First, let’s look at the interest rate.
Just like a 15-year rate is usually lower than a 30-year rate, a 30-year rate will be lower than a 50-year rate.
“You will definitely be paying a good three-quarters a point or more for this 50-year term, just because the risk is there,” she said.
Your next consideration? How much you will be paying in interest.
“You’re going to be paying a lot more interest than you would on a 30-year loan,” McClelland warned.
Let’s take a $450,000 loan at 6.25%.
McClelland said for a 30-year term, the monthly payment is about $2,771. The total interest? Around $547,436.
Extend that loan to 50 years and the payment drops by $300 a month.
However, the new total interest now, an estimated $912,666.
“When we’re factoring this into affordability, is it really making it more affordable? If they have to put 10% down, if their debt-to-income ratio has to be stricter, if the rate is going to be higher,” she said.
Questions, hopefully to be answered, as the conversation continues. Like many other mortgages, you can pay the loan off early as long as the terms permit.
