50-Year Mortgages Shift Economic Pain Without Solving America’s Housing Crisis
The Trump administration's proposal for 50-year mortgages promises to make homeownership more accessible through lower monthly payments—but at what cost? An investigation into the policy reveals it would save borrowers roughly $266 per month while adding nearly $400,000 in lifetime interest payments, barely reduce principal for the first two decades, and likely drive home prices even higher by increasing buyer purchasing power without adding supply. Housing economists warn the plan functions as political theater that monetizes desperation rather than addressing America's 7-million-unit housing shortage. With first-time buyers now averaging 40 years old, a 50-year mortgage means payments until age 90—well beyond life expectancy—while building minimal equity and creating unprecedented vulnerability to foreclosure. International precedents from Japan's catastrophic 100-year mortgage experiment and the UK's worsening affordability crisis despite extended terms suggest such policies transfer wealth from struggling homebuyers to banks and sellers. As one expert concluded: "Borrowers will see through that. They will know that they will not generate any wealth."
