President Donald Trump is promoting a new federal initiative to allow 50-year fixed-rate mortgages, a move that has ignited debate across the political spectrum as Americans face record housing costs. The proposal, framed by the administration as a strategy to improve affordability, has drawn strong reactions from conservatives and economists who warn it could saddle families with lifetime debt.
The Trump administration is exploring a plan through the Federal Housing Finance Agency (FHFA) to introduce a 50-year mortgage product, expanding the traditional 30-year model that has defined U.S. home loans for nearly a century.
FHFA Director Bill Pulte confirmed on X Saturday that the agency is “working on the 50-year mortgage, a complete game changer, thanks to President Trump.”
The plan would lower monthly payments by extending repayment schedules, enabling more Americans to qualify for loans and afford home purchases.
Mortgage analyst John Pompliano wrote, “The 30-year mortgage is one of the best financial products available to Americans. 50 years is even better.”
Conservative backers argue the policy expands personal choice and supports the long-standing ideal of homeownership as a cornerstone of economic freedom.
Yet the proposal has generated sharp criticism, including from within the Republican Party. Rep. Marjorie Taylor Greene said, “I don’t like 50-year mortgages as the solution to the housing affordability crisis.
“It will ultimately reward the banks, mortgage lenders, and homebuilders while people pay far more in interest over time and die before they ever pay off their home,” she added. “In debt forever, in debt for life.”
Analysts at HousingWire warned that longer-term mortgages could “reduce equity accumulation and nearly double total interest costs,” while libertarian groups have said the plan does little to address supply shortages.
Maggie Anders of the Foundation for Economic Education argued, “Young Americans don’t want to be debt slaves for the rest of their lives. We want cheaper houses, which can only be accomplished by increasing the supply through deregulation.”
Financial experts also caution that introducing 50-year loans could strain lenders and federal mortgage agencies such as Fannie Mae and Freddie Mac. Extending amortization could slow repayment rates and magnify systemic risk in a downturn, according to reports from HousingWire and American Banker.
Historically, the 30-year fixed mortgage became the standard under President Franklin D. Roosevelt’s New Deal in the 1930s, aimed at stabilizing the housing market during the Great Depression.
Housing economists note that without a corresponding increase in supply, lower monthly payments could drive up home prices rather than improve affordability.
“We have affordability challenges in America, but subsidizing more demand from 30- to 50-year mortgages is not the policy we want to take now,” said HousingWire lead analyst Logan Mohtashami, according to Newsweek.
“The 30-year fixed is perfectly fine as is.”
Implementation details have yet to be released, and the FHFA has not specified when or how the longer-term product might be rolled out, as an expansion may require congressional or regulatory changes under the Dodd-Frank Act.
© 2025 Newsmax. All rights reserved.
