With home prices soaring and affordability at historic lows, President Donald Trump has floated a bold idea: 50-year mortgage loans. The proposal aims to lower monthly payments and help more Americans buy homes.
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While the concept sounds unconventional, some mortgage experts believe it could work — including Phil Crescenzo Jr., vice president of the Southeast division at Nation One Mortgage Corporation.
Here’s why Crescenzo believes a 50-year mortgage could benefit homebuyers.
Longer Mortgages Could Help Buyers Afford Homes
Crescenzo said extended loan terms could open doors for buyers who are currently priced out of the market.
“A longer term offers lower payments, which could help buyers with affordability,” he said. “I have seen many industry opinions already on the topic, mostly negative, due to the increased number of years paying interest, but I feel like anything that opens more doors has benefits.”
He added that he believes that most homeowners wouldn’t keep the loan for the full 50 years. Instead, they’d refinance or sell well before the term ends. “Considering most homebuyers are going to change financing well in advance of that 50-year term, it could be a door opener for some,” he said.
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More People Could Qualify for Home Loans
For some buyers, the biggest hurdle isn’t just the monthly payment — it’s qualifying for a mortgage at all. A longer term could change that.
“Someone who was disqualified for a standard term may qualify with the longer extended term,” Crescenzo said.
Positive Impact on the Housing Market
If more Americans can buy homes, Crescenzo believes the ripple effect could stabilize the real estate market.
“New homeowners into the marketplace creates stability in the market,” he said.
Possible Downsides of a 50-Year Mortgage
While Crescenzo is generally in favor of having the option to take out a 50-year mortgage, he does note there are some potential drawbacks.
“Adding several more years to a mortgage term would be a negative aspect,” he said. “Little paid in to principal over the course of that loan must be factored in. Longer terms create property valuation concerns if value and maintenance are required.”
Homebuyers must understand the risks before entering into this long a loan term, Crescenzo said. “The biggest risk is paying little into equity versus interest in extending the term longer,” he pointed out. “Potential new homeowners may not be focused on this, or know to pay attention.”
Should You Take Out a 50-Year Mortgage?
Trump’s 50-year mortgage proposal could make homeownership more accessible — but at a cost. Lower monthly payments may help buyers get in the door, but the long-term financial trade-offs are significant. Homebuyers should weigh affordability against interest costs and equity before considering such a loan.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Trump’s 50-Year Mortgages: Why One Expert Thinks They’ll Help Homebuyers
