Trump proposes 50-year mortgage plan as housing costs skyrocket

1:36 Donald Trump attends a dinner with the leaders of the Central Asian C5+1 countries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan in Washington, DC on November 6, 2025. Nathan Howard/Reuters

President Donald Trump has proposed a new 50-year mortgage plan as a way to encourage young people to buy real estate, according to a post on his Truth Social Platform page. US Federal Housing Director Bill Pult also responded to X, saying the agency is working to implement a new housing proposal.

“Thanks to President Trump, we’re really working on a 50-year mortgage—a complete game changer,” Pulte posted.

“We hear you. We’re focused on delivering the American Dream to YOUNG PEOPLE, and that can only happen at an affordable homebuying level. A 50-year mortgage is just one potential weapon in the WIDE arsenal of solutions we’re currently developing. STAY TUNED!” he added.

Donald Trump attends a dinner with the leaders of the C5+1 Central Asian countries: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, in Washington, DC on November 6, 2025. Nathan Howard/Reuters

The goal of a longer-term mortgage plan would be to lower, according to Fannie Mae’s mortgage calculator, the monthly payment and principal amount needed to buy a home by stretching payments into the future for smaller amounts.

According to Fannie Mae’s mortgage, a $300,000 home with a 5% interest rate and a 5% down payment would cost $2,254 per month with a 15-year fixed mortgage, $1,530 per month with a 30-year fixed mortgage, and $1,294 per month with a 50-year fixed mortgage. calculator.

15, 30 and 50 year mortgages on $300,000 home, 5% down payment, 5% interest rate Fannie Mae Mortgage Calculator

However, the Dodd-Frank Wall Street Consumer Protection Act’s Qualified Mortgage Rule, enacted to protect consumers after the 2008 financial crisis, currently prevents the federal government from creating mortgages for 40 or 50 years, so President Trump will have to find an innovative way to implement his mortgage plan.

A “For Sale” sign is seen in front of a home in this undated stock photo. STOCK PHOTO/Getty Images

“President Trump is always looking for new ways to improve housing affordability for ordinary Americans. Any official policy changes will be announced by the White House,” a White House spokesperson told ABC News in a statement.

Some Republicans in Congress are breaking party lines with Trump in response to his potential 50-year mortgage idea.

Georgia Representative Marjorie Taylor Green posted on social media that she believes the new mortgage plan will only push more people into debt because they will actually pay more over the life of their mortgage.

“I don’t like 50-year mortgages as a solution to the housing affordability crisis. It will end up rewarding the banks, mortgage lenders and homebuilders, while people pay much more interest over time and die before they can pay off their home. In debt forever, in debt for life!” Rep. Greene wrote on X.

Rep. Rep. Thomas Massey, R-Ky., also criticized the idea.

“How is ‘here, enjoy that 50-year mortgage’ different from ‘you’ll have nothing and you’ll love it,'” Rep. Massey posted on X.

However, some real estate professionals praise Trump’s idea. Opendoor’s CEO, Kaz Nejatyan, said on X that the new policy will help a lot of people if it goes into effect.

“mortgage for >”mortgage for 62~”mortgage for 50 years is probably the most pro-homeowner government policy of the last two decades,” Nejatyan wrote on X.

The average age of first-time homebuyers was 28 in 1991, but will rise to 38 by 2024, according to the latest data from the National Association of Realtors.

According to recent data from brokerage Redfin, the average US household spends 39% of its income on mortgage payments, as the income required to make the average mortgage payment is significantly higher than the average household income.

“Nationwide, the typical homebuyer would need to earn $112,131 a year to afford a median-priced home — about $25,000 more than the average household makes,” their latest data shows.

The US Federal Housing Agency did not immediately respond to ABC News’ request for comment.

Source: abcnews.go.com