BREAKING: President Trump will impose “50-year” mortgage!

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I told you it was coming, but I thought they’d go to the 40-year mortgage.

I guess I was half-right, President Trump announced today that he wants to eliminate the 40-year mortgage and implement the 50-year mortgage to lower monthly payments for home buyers.

President Trump posted this on TruthSocial:

If you don’t know your history, you may not realize that it was President Roosevelt (Franklin Delano, not Teddy) who first introduced the 30-year mortgage to make the American dream of buying a home possible.

Before, not many people were able to buy homes and those who could often bought in cash.

Now President Trump is calling on Roosevelt to show that there is a clear historical basis for taking the next logical step in the 50-year period.

And now Bill Pulte, director of the Federal Housing Finance Agency and president of Fannie Mae and Freddie Mac, has confirmed on Twitter that at the direction of President Trump he is indeed working to implement the 50-year mortgage:

Now let’s break it down a bit to understand what this really means…

Because I’ve come to understand, finances and mortgage payments aren’t exactly the sexiest thing to talk about.

But you have to see it to understand what it will do.

This will do two things: (1) It will absolutely lower your monthly payments, and if that’s all you care about, that’s a game-changer. But (2) it will result in you paying a lot more interest over the tenure of that loan.

Here are two scenarios to put this in perspective.

First, what a $750,000 loan at 5% interest looks like when it’s 30 years versus 50 years:

Here are the principal + interest payments (no taxes/insurance), assuming a fixed 5% rate:

  • $750,000 – 30-year (360 months) at 5%: ≈ $4,026/month

    • Total payment ≈ $1,449,418 → interest ≈ $699,418

  • $750,000 – 50-year (600 months) at 5%: ≈ $3,406/month

    • Total payment ≈ $2,043,624 → interest ≈ $1,293,624

exchange: Cuts 50-year payments by approx. $620/monthbut roughly adds $594,206 Higher interest on loan tenure.

And here it is for a $300,000 loan at 4.5% interest:

  • $300,000 – 30-year (360 months) at 4.5%: ≈ $1,520/month

  • $300,000 – 50-year (600 months) at 4.5%: ≈ $1,258/month

exchange: Cuts 50-year payments by approx. ≈ $262/monthbut roughly adds ≈ $207,682 Higher interest on loan tenure.

So what do you think?

Would you sign up for a 50-year loan?

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