President Donald Trump‘s push for a 50-year mortgage—a plan floated to ease housing affordability—may shave hundreds off monthly mortgage bills, but it could ultimately burden homebuyers with far higher long-term costs and slower equity gains.
On Saturday, Federal Housing Finance Agency Director Bill Pulte confirmed that the Trump administration is "working on" introducing a 50-year mortgage product, calling it a "complete game changer."
But the numbers tell a more complex story.
30-Year Vs. 50-Year Mortgage: What Does The Math Say?
At today's average 30-year mortgage rate of 6.22%, a $500,000 loan would cost about $3,069 per month, according to estimates from Econbeat's Mortgage Corner. Over the full loan term, the total interest paid would reach $604,781.
Stretch that same loan over 50 years—assuming the same 6.22% rate, which is already a generous assumption—and the monthly payment drops to $2,714, offering a $355 monthly savings. But that lower bill only lasts for the first 30 years. After that, borrowers still owe $2,714 a month for two more decades.
By the time the 50-year mortgage is finally paid off, the total interest paid would balloon to $1,128,205—that's $523,424 more than the 30-year loan, or an 87% increase in total interest.
So while the extended term helps reduce upfront monthly costs, it comes at the expense of long-term financial health and delays the path to true homeownership.
And this analysis assumes the same interest rate for both loans. In reality, 50-year loans would almost certainly come with higher rates, meaning the cost gap could be even larger.
| Loan Term | Interest Rate | Monthly Payment | Total Interest Paid | Interest Expense Difference vs. 30-Year | % More Interest vs. 30-Year |
|---|---|---|---|---|---|
| 30-Year | 6.22% | $3,069 | $604,781 | — | — |
| 50-Year | 6.22% | $2,714 | $1,128,205 | +$523,424 | +87% |
Buyers May Lose More Than They Gain, Say Experts
"The appeal of the 50-year mortgage is to offer lower monthly payments to homebuyers," said Joel Berner, senior economist at Realtor.com, in an emailed note to Benzinga.
"The drawbacks are that a 50-year mortgage results in almost double the interest payments of a 30-year mortgage and a longer path to meaningful home equity."
Berner added that while the plan may stimulate buyer activity, it does nothing to increase housing supply, with the potential to further worsen the current affordability crisis.
"Subsidizing home demand without increasing home supply could be an increase to home prices that negates the potential savings," he said.
Even with a modest 6.25% rate, Berner estimated monthly savings would shrink to just $250 compared to a 30-year loan.
Over time, however, that same borrower would still pay $378,240 more in interest. After a decade, the 50-year mortgage balance would still hover over $345,000, compared to $303,000 for the 30-year option.
Yet, Berner added that it’s an unrealistic scenario where both a 30-year and a 50-year mortgage carry the same interest rate.
“Rates would be higher on the 50-year loan in the same way that 30-year rates are higher than 15-year rates. The longer the life of the loan, the more compensation the lender will demand,” he said. "This is not the best way to solve housing affordability. The administration would do better to reverse tariff-induced inflation… and promote homebuilding."
Who Really Wins From A 50-Year Mortgage?
Not the borrower, according to Brandon Avedikian, founder of commercial real estate brokerage firm Aspire Commercial.
In a post on X, the expert highlighted how slowly borrowers build equity in a 50-year mortgage. Only 5% of early payments go toward principal, compared to 17% in a traditional 30-year loan.
It takes 26 years for a 50-year borrower to reach the point where 25% of their payment goes to principal—something that happens by year 7 under a 30-year mortgage. Hitting the 50% mark? Year 38 in a 50-year versus year 18 in a 30-year.
"If you’re going to get a 50-year mortgage, you might as well just rent and let someone else deal with major repairs and capital expenses," Avedikian said.
According to Avedikian, cities, counties and school districts stand to gain the most as rising home prices push up property tax assessments. "They'll make a fortune as rising property values will drive up property tax revenue—and they’ll waste the money, of course," he said.
The extended loan terms would also fatten the profits of lenders, title companies, appraisers and others who make money on transaction volume. "Lenders will love it because 95% of the borrower’s payments will go to interest and they'll never actually pay down principal," Avedikian said. "Everyone who profits off transactions will get rich. But the people they’re trying to ‘help' will be worse off. And housing will be more expensive for everyone."
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