50-Year Mortgages?

The Big Rule Change Proposed by the White House

Here’s a headline that caught everyone’s eye: the White House has floated a plan for “50-year mortgages” to help first-time buyers. The idea is simple—extend loan terms from 30 to 50 years to cut monthly payments by ~$200–$300 on a $400k loan at 6.3%.

But the downsides are significant:

• Slower equity build-up. The first 20 years are mostly interest.

• Higher total interest paid. Borrowers could spend tens of thousands more over time.

• Potential market risks. Longer terms can inflate home prices and reduce mobility.

• No help on true barriers. Down payments, taxes and insurance still weigh heavy.

Supporters argue it widens access for younger buyers; critics see it as a temporary band-aid on a supply problem. If implemented, lenders would need to re-evaluate risk and pricing models from scratch.

Bottom line: The proposal could make homeownership look easier on paper, but for most borrowers, equity and long-term costs still matter more than monthly savings.

📊 Curious how a 50-year option could stack up against a 30-year or 15-year plan? 🔗 Let’s schedule a time for a side-by-side comparison to see what’s right for you.

Sources:

🔗 [HousingWire coverage]
🔗 [Newsweek analysis]
🔗 [Barron’s market commentary]