BREAKING: Trump Announces 50 Year Mortgage – What You MUST Know!
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THE ORIGIN OF THE 30-YEAR MORTGAGE
The 30-year mortgage was created in the 1940s to help finance new construction after WW2. By the late 1950s, it became the standard across the housing market, designed to help families build long-term equity while keeping payments manageable. Today, more than 90% of buyers choose the 30-year term because it offers fixed monthly payments, predictable costs, and flexibility that fits most incomes and lifestyles.
HOW MORTGAGE PAYMENTS ARE STRUCTURED
Every fixed-rate mortgage payment is split into two parts: principal and interest. In the beginning, nearly all your payment goes toward interest since you still owe almost the full loan amount. Over time, as your balance decreases, the portion applied to principal grows and the portion to interest shrinks. This gradual shift is why early homeownership builds equity slowly — the first decade is mostly just paying the bank. Given that the average homeowner sells after 12.3 years, most people barely make a dent in their principal before restarting the process with a new loan.
THE 50-YEAR MORTGAGE CONCEPT
Recently, talk of a 50-year mortgage resurfaced after Donald Trump suggested extending loan terms to make homes more “affordable.” Even large developers like Pulte Homes hinted at exploring the idea. The pitch sounds appealing: stretch out payments, lower the monthly cost, buy more house – but mathematically, it falls apart. Extending a loan from 30 to 50 years barely changes affordability.
THE MATH NO ONE MENTIONS
Going from a 15-year to a 30-year mortgage boosts affordability by about 34%. But going from a 30-year to a 50-year only improves it by around 8%. Worse, longer loans come with higher interest rates to compensate lenders for the additional risk. If 30-year loans average 6.125% and 15-year loans average 5.375%, a realistic 50-year term could hit 7%. That means on a $500,000 loan, your monthly payment might actually be higher than the 30-year option. Even if rates somehow matched, your savings would only be about $368 per month (hardly worth staying in debt for an extra two decades).
WHY INVESTORS WOULD HATE IT
Mortgage rates track the 10-year Treasury yield because most people sell or refinance within a decade. That makes 30-year mortgages easy to bundle and sell to investors, who get repaid sooner. But a 50-year mortgage traps capital for half a century. Investors face decades of interest-rate risk, and borrowers would build almost no equity for years. For example, on a $500,000 50-year mortgage, after 12 years you’d have paid off only about $32,000 of principal. If the market dips just 6%, your equity could vanish completely, a huge systemic risk for both banks and homeowners.
THE REGULATORY WALL
By law, a “qualified mortgage” cannot exceed a 30-year term. Anything longer becomes “non-qualified,” meaning the lender loses many legal protections if a borrower defaults. That makes it nearly impossible to offer 50-year loans at competitive rates unless Congress rewrites mortgage law. Even then, banks would only do so if the government subsidized the risk, effectively making taxpayers backstop 50-year debt.
WHY IT WON’T WORK
The 50-year mortgage would add almost no meaningful affordability, dramatically increase lifetime interest, and trap homeowners in decades of debt while providing virtually zero equity growth. It introduces massive risk for banks, investors, and borrowers alike. The only way it could exist is as a niche developer-backed product with assumable terms, meaning you could inherit your parents’ mortgage when they pass away. Otherwise, it’s just political theater.
REAL SOLUTIONS TO HOUSING AFFORDABILITY
Instead of stretching loans to absurd lengths, the focus should be on unlocking more inventory. Increasing the capital gains exclusion for home sales to $1 million (and indexing it to inflation) would motivate more sellers. Allowing homeowners to carry their existing mortgage to a new home would ease “rate lock-in.” Expanding the mortgage interest deduction cap from $750,000 to $1.5 million would also help buyers in high-cost areas.
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50 years. Lol. So the average person would be dead before paying off their house. The banks will love this.
The average homeowner would be 90 by the time it’s paid off 🤪
And some people rent their entire lives. I guess you can view it as that at that point
@TA-np4mcthere’s flexibility in renting that a house would not give. You can leave a rental, you suggest they leave their homes? Are you suggesting that they subletting their home to move elsewhere that meets their needs? Also… No interest my guy
@GrahamStephanyeah but people that get 30 year mortgages tend to pay them off within 15 years.
@Warrenmitchumlmao show me the stats for that
A lifetime of debt is insane.
Just how Americans like it. It is not how much, but how much per month.
Not insane at all. People die with thousands of dollars in credit card debt. Those are the winners.
you should look up the origin of the term mortgage…
@johnathanvale8634that don’t matter. Like the origin of the term salary.
@Warrenmitchuma mortgage is the dead pledge. it will die when the house is taken from you, or when you pay it off
Get ready for million dollar median home prices
That’s the goal. The number must go up. To protect the baby boomers
We are almost there
I’m from Los Angeles. That’s been the price for years
Trump does not want to improve the lives of the average American. He wants to help his rich friends get even wealthier. People are poorer now than 20 years ago because wages have not kept up with income. We need to build more affordable homes and raise wages. Why is it that they ran to Fauci when there was a virus problem, but they never talk to economists when there is an economy problem?
@bibby30272 protect government. Extends Medicaid qualification.
A 30 year mortgage is also insane.
Always thought so lol
That is what I’m saying. There is no big difference between 30, 40 or 50-they are all a lifetime. SMH
pay 100 to 200 extra month right off the rip. You’ll shave off a decade easy.
@spec2016 thats not the point. Increased borrowing capacity just inflates prices and benefits those who already own assets at the expense of everyone else
50 year mortgage with a lower payment than lets say RENT ? Why not ? Get a 50 year mortgage, and sell or rent out the home in 20 years and buy something else when Im in a better position.
This MAY be good for someone depending on their situation. May not be the best for everyone, but may be just right for a specific person.
50-year mortgage? Sounds like passing debt to the next generation 😬
Or passing a home that is almost paid off to your kids
@DrLaurelWeaver I like that response.
@Ran_dum1well, with inflation near 3.4 in 50 years those borrowed money would cost way less
@E1ara I think the inflation is different, gold rose 50% for past year, so if you want to trade with another country that uses gold, you have to use twice as much dollars to buy the same amount of gold now, just for last year alone. So a $500k home today, may be sold for $50 million after 50 years.
A 50 year mortgage is the same as renting lol
You will own nothing and you will be happy
Lol, you guys and lying….
We are well on our way to this most unfortunate hell-ish nightmare
The only thing that the government will allow you to own is a soul crushing debt. Lovely.
💯💯💯💯💯💯💯💯
You don’t own nothing now either. You have to ask permission to do any upgrades to your house. Not that I agree with a 50 year mortgage.
How about a law that prohibits corporations from buying and manipulating home prices
Absolutely I always think this
DR Horton is notorious for this
Oscar, run for office. We need these ideas in the government being argued for, implemented.
Corporations aren’t the problem, they make up <1% of all transactions.
@GrahamStephan I think you meant to say <1% of homes are owned by corporations. My googling suggests even this is only true for institutional investors, and rises to 10% when you include all single family homes owned by corporations. When it comes to "transactions", or the fraction of home purchases in a year that went to corporations, the figure is more like 30-40%.
The fact that they would consider giving people a 50 year mortgage when the average homeowner is now in their 40s or older is absolutely ridiculous.
Doesn’t mean you need to stay in that 50 year loan for the rest of your life dumb dumb. I bought a home in 2018 for 815,000 on a 30 year fixed loan with 25% down. My stocks went up, my income went up etc. I then refinanced into a Fix15yr in 2022. Now I’m contemplating paying off the entire mortgage. think outside the box and stop complaining like a simpleton.
It a person is 40, then don’t take that loan. 15 yr or so loan.
@Rob_G716that was no complaint that is in fact just data I know to be true.
@Rob_G716it is a solution but a bandaid to a gunshot wound home prices are way out of control and with blackstone and other private equity ruining the market
I’m only makes sense if your first time buyer, might help you get in a home without being house broke. You would obviously want to refinance put of that 50 year mortgage down the road.
Average American is never going to pay off a home anyways, but at least you can start building equity
A 50 year mortgage is admitting we are out of control!
50 years is too short! I want a 100 year mortgage!
😂😂😂😂😂😂
Exactly, I need 75 years minimum
I was looking for a 100 million year mortgage, please
😂😂
😂
Everyone says a 50-year mortgage is “more affordable,” but if the payment barely drops and you stay underwater longer, isn’t this just a clever way to hide higher home prices? Feels like we’re financing the problem instead of fixing it.
You said “if” I say “if not”
It’s absolutely going to drive house costs up
Yes but if you can count on anything it’s Americans’ inability to delay gratification. The fact that Klarna got as popular as it did…
How else is everybody gonna buy a $500,000 house?
Might as well rent
A 50 year mortgage to “own” a home built to last 20 years.💀
There are no 20 year he’s. Stop believing every Tik Tok you watch
@escapedfromnewyorkwhat utility lasts more then 30 years?
Most people park a 50k car in front of a 20k trailer , those r the people who will buy a house for 50 years
brother what shack are you buying that lasting you 20 years lmfao
There are a lot of mobile homes in Florida that are over 50 years old…
If you need a 50 year mortgage, you can’t afford the house.
Well people have to live somewhere.
That’s the point, nobody can afford houses.
@frankvonfrauner true, but fake solutions like this which actually make the situation worse are massive barriers to actually addressing it
We need more houses to be built. Up here in norcal house prices went up due to all the fires. Houses went from $300k ( isnt too bad ) to $450k+
My credit, DTI, and income are more than enough to buy a house and I still would get denied to buy one.
A 50 year mortgage sounds like you’re just renting forever while also being responsible for all the maintenance and repairs
Oh so you know a debt trap when you see one. Really start to think the republican party hates everyone.
@cell718 at least you’re building equity lol. Something to fall back on, it beats renting and paying off somebody else’s mortgage
@cell718they do not care about the lower income class how obvious can it be
Ah until the dollar collapses and suddenly inflation just paid off your mortgage
you will pay rent forever, even after the house is paid off. property tax doesn’t go away, ask me how I know.
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What do you think if u can get a fix rate of 2.8% and expect the inflation to average higher than that?
50 year mortgage should be about $300-$400 cheaper a month. (Yes, I did watch your video all the way to the end.) It may not seem like much money to you, but to someone struggling, it makes a big difference. A 50 year mortgage can be paid off in 15 years. Your just not forced to make the higher payments.
😅😅
@GrahamStephan … Thank You for this video… Could You Please make a video explaining how the ‘System’ likely ends up with people’s homes towards the end of life??? Especially those that retire as an average middle working class American…
Here’s some context…
2 sets of Grandparents,
Both sets retired as Millionaires.
Grandparents #1 Retired w/ over 10M.
Paid for their Home completely as they built it, NEVER had a mortgage.
Kept the same home from 1950’s-2020’s.
Towards the end of life, Grandpa got Alzheimers & eventually got aggressive,
My Grandmother had to put him the local Nursing Home in a Private Room, she went daily from 4a-4p for over 12 years…
In order to not lose everything they owned (such as home, property, savings) she had to opt to private pay out of pocket over $10K/month for a Private Room at a LOCAL RURAL Nursing Home,
(NOT a Nicer senior living or aging mind facility, but an actual old, dumpy Nursing Home, chosen bc it was the only place nearby so she could see him everyday)…
That $10K/month for over 12 years was ONLY the cost of the Private Room w/ basic care. Additionally, she had to Private Pay another $8K/month on average for Healthcare Specialists, Doctors, extra Nurse Aids to keep him cleaner & changed & rotated in bed more than what basic care provided, etc.
She was paying on average $216K/yearly for 12 years, totaling 2.5M in final costs to avoid having to sign over their Home, Properties, Savings, etc to the Nursing Home “Medicare System”…
Medicare has a multi-year ‘look-back’ system, so with my Grandpa’s illness taking over rapidly, there was not enough time for her to sign assets over to her kids to protect them. She paid out of pocket to try to protect their assets that took a lifetime to build w/ my Grandpa. At the time, nobody could tell us how long my grandpa would make it, they had to keep him on calming meds around the clock, and Doctors kept saying he would not make it more than a few years at most.
She was able to sign over their assets to family many years before she fell ill, (& cleared the Medicare look-back, pay-back window), which provided her the ability to not lose her home, and she was able to pass on in the comfort of her own home with home health hospice nurses & surrounded by loved ones & have most of the costs covered by Medicare, without having to lose everything. However, had she not signed over assets many years in advance, Medicare would have required them or for her to dwindle her life savings down to pay, leaving very little to her kids.
******************************************
Grandparents #2 Retired with $2M.
Built their home in 1960’s.
Kept their home from 1960’s-2020’s.
Had a Mortgage. Paid off mortgage early,
& Owned their home as well.
Grandpa gets serious illness, requiring an extensive amount of medical treatments, etc that accumulated in costs within a few years; eventually my Grandma had to Private Pay Hospice Nurses to come in help him in the end. She did not want to lose their home, life savings, etc. she also didn’t want to sign over her assets to her kids (which is understandable), but then when she got Dementia, she declined rapidly, & ended up losing most of everything else, including her home, savings, to the Medicare System.
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Can you explain this better, and how to protect assets in the end, especially when it took at least half a lifetime to accumulate a nest egg, w/ home, savings, investments, other properties.
******************************************
The 50yr Mortgage could be to incentivize a couple to buy younger, stay in the same home you raise your family in, *BUT* Financially it is a disaster waiting to happen. Not, to mention, with the current Medicare System, it is unlikely you will be able to leave it to your kids, as many will have to sign it back over to Medicare to receive end of life care or long-term care.
I almost never comment on videos, but this is something that I think that more people need to hear, especially before they buy their first home. Thank you for putting out this video! It’s well researched. Beautiful graphs. Nice job!
Remember when they said, “You will own nothing and be happy” in 2016?
It was a dystopian warning and we all ignored it.
That statement was from the world economic forum and was on their landing page. If anything a 50yr will lower the monthly payment significantly which young people could use
@aprilfiffth No, watch the video. It won’t significantly reduce the payment except in a near or below zero interest environment.
It was the GOP. I always knew it. They were always pushing the idea that the left was the one doing this. And yet the right is the side that wants a new world order, and to disrupt the financial system to only benefit the billionaires and now trillionaires.
Those damned SOCIALISTS! They’re right again… Well too bad we’re stupid and capitalistic. Profits over people!
Buy now pay later burritos at Chipotle 😂 that made me laugh 😂
lol our system fucked either way
You don’t own your home even after you paid off, you are perpetually renting everything you own from the government through taxation
You don’t really own your car because you have to put new tires on it every couple years and pay registration and insurance.
Property taxation is for services, like roads, Snow removal for those who have, garbage, etc…
@msbebelle07 you will own nothing and be happy…
@frankvonfrauner you really bought into the lies, didn’t you. The US dollar is literally monopoly money and you’re telling me to believe taxes pay for roads😂
The only difference between Monopoly money and the US dollar is collective belief: both are colored paper with no intrinsic value, yet the dollar commands goods, services, and global power solely because governments, banks, businesses, and billions of people trust it will be accepted tomorrow, enforced by legal tender laws and the full faith of the world’s largest economy; shatter that faith and the dollar collapses just as fast as a hotel on Boardwalk.
That’s why I chose the 15 year option. Bought during Covid and instantly got equity within 2 years. Now 5 years later and I have already paid off over 1/3 of my loan.
Giga Chad
You got equity right away because the housing market totally did something that hasn’t done in decades. Everything went up. I sold my home the same and made a lot of money, but this is not a normal instance.
Nice!!
My Parents paid their home off in 17 years on a 30 year Mort. I remember because I had just finished high school and they started taking trips every week. Leaving me there to survive by myself 😩😭
lol