I’m a Real Estate Expert: Here’s Why I Think Trump’s 50-Year Mortgage Idea Will Work

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More than half (54%) of Millennials say they’d consider a 50-year mortgage, compared to just 29% of Boomers according to a survey by BadCredit.org. 

That makes sense, given that roughly 80% of Boomers already own a home per National Mortgage Professional. 

Given the controversy over President Trump’s 50-year mortgage proposal, what do proponents say?

Foot in the Door of Homeownership

Just because you take out a 50-year mortgage to buy your first home doesn’t mean you’re stuck with it for all 50 years. Most first-time homebuyers today take out a 30-year loan, but many later refinance into 15-year loans after all. 

While many critics argue the longer loan term only reduces the monthly payment of a typical home by $125 to $250, that’s not chump change for many Americans. “That difference in payments can mean the difference between qualifying for the loan versus staying stuck in the rental market forever,” said Sain Rhodes, real estate expert with Clever Offers.

Downward Pressure on Rents

More Americans buying their own homes means less demand for rental units. That puts downward pressure on rents, boosting affordability for renters. 

Landlord and business professor Arie Brish of St. Edwards University shared some thoughts on this. “Lower demand for rental housing would force landlords to offer more flexibility for tenants,” Brish said.

Most Owners Don’t Pay Their Loans Off Anyway

Critics argue that longer loan terms mean more homeowners would stay indebted and never pay off their mortgage loan. But the bulk of homeowners never pay off their mortgages already. 

“Most homeowners sell or refinance homes within seven-to-ten years of buying,” Rhodes added. “Home appreciation creates far more equity than principal pay-down on the mortgage.” 

Underscore City Affordability Differences

Many opponents raise a valid criticism: lower monthly payments mean buyers can and will bid up prices higher, negating any affordability advantage. 

That holds true — for already expensive, high-demand markets. But what about lower-demand, affordable markets like Cleveland, where Zillow pegs the average home price at $111,728? 

Adam Hamilton, real estate expert at REI Hub argued that 50-year mortgages would expand the affordability divide between cities. “If residents leave more affordable markets to buy into more expensive cities, that would help lower prices even further in lower-demand markets, making housing more affordable there,” Hamilton explained. That in turn invites the pendulum to swing back again, incentivizing inbound migration. 

That rebalancing has already happened in many markets. San Francisco home prices have fallen 15.2% since 2022, while Cleveland has jumped 11.5% in the same period. After the initial shuffle, an even starker difference in affordability may push middle-class buyers to explore greener pastures.

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