Industry Reacts To Idea Of 50-Year Mortgage
FHFA Director hints that the Trump administration is working on a new mortgage term to increase homeownership and combat affordability
Story updated: January 11, 2026
In a social media post this past Saturday, Federal Housing Finance Agency (FHFA) Director Bill Pulte noted that the Trump administration is developing a plan to introduce 50-year mortgage terms for prospective homebuyers.
“Thanks to President Trump, we are indeed working on The 50 year Mortgage 一 a complete game changer,” said Pulte from his X account.
The post was accompanied by an image of President Trump and President Franklin D. Roosevelt, who championed the 30-year mortgage during the New Deal, a series of programs, public works projects, financial reforms, and regulations enacted by President Roosevelt between 1933–1939 to combat the Great Depression.
In a time when affordability and high prices are keeping many prospective buyers on the sidelines, the 50-year mortgage option may assist millions in achieving the American dream of homeownership. Redfin reports that the median U.S. household is currently spending approximately 39% of its monthly income on mortgage repayments — a total above long-term affordability benchmarks.
As the American dream still centers on homeownership, it has become a symbol of stability and long-term investment. The latest Coldwell Banker 2025 American Dream Report reveals that 71% of aspiring homeowners (defined as those who don’t currently own a home, but want to someday) are delaying major life decisions like starting a family, launching a business, or changing jobs around the moment they finally get the keys to their own home.
Upon Pulte’s post, many in the industry have taken to social media to share their thoughts on the administration’s 50-year mortgage plan, as opinions have varied from praise to criticism.
"I think it could be a good thing for homeowners to have another option that helps with affordability. Lower monthly payments can open the door for more people to buy a home, especially first-time buyers," said Tyler Hodgson, founder of NXT Mortgage via LinkedIn. "The 50-year mortgage won’t fit everyone, but for the right buyer, it could make homeownership possible when it otherwise wouldn’t be. It will be interesting to see how this unfolds."
Phil Ganz, president of Next Wave Mortgage, also praised the idea via LinkedIn: "A 50-year mortgage isn’t crazy — it’s smart. It keeps payments low, helps more people own homes, and protects cash flow when inflation rises. Now imagine pairing that with no property taxes on primary residences ... that’s true affordability and generational opportunity — not politics, just common sense."
Christopher M. Naghibi, host of The Higher Standard Podcast, does not agree.
"A 50-year mortgage does not solve the affordability crisis," wrote Naghibi on LinkedIn. "It makes it orders of magnitude worse. Home values would skyrocket as demand sucks up the remaining inventory. Anyone who says otherwise is likely incentivized to make money off of real estate market activity."
Jason Russell, divisional vice president at NEO Home Loans, posted on his LinkedIn page: "A 50-year mortgage is a tax on people who are bad at math. I said what I said.”
Chris Shrader, senior loan officer with Success Mortgage Partners, questioned the 50-year mortgage as a true win by crunching some numbers in a LinkedIn post:
“The administration’s new proposal for a 50-year mortgage might sound like a breakthrough for affordability — but the math tells a different story.
“On a $300,000 loan at 6.25%: 30-year = $1,847/month, $364,920 in interest and 50-year = $1,520/month, $612,000 in interest.
“That’s a $327 lower payment … but $247,000 more interest.
“Lower payments don’t create affordability — they just delay the pain. Real affordability comes from strategy, not stretching the debt. Let’s talk about building wealth, not just buying time.”
Pulte recently indicated that the Trump administration may be moving away from the 50-year mortgage proposal as reported by news outlet The Hill.
“I think we have other priorities,” Pulte said, turning attention toward President Trump's recent comments regrading an initiative aimed at restricting large institutional investors from purchasing single-family homes in the U.S., a policy Trump feels is critical to addressing the ongoing housing affordability crisis. Trump stated that he is “immediately taking steps to ban large institutional investors from buying more single-family homes,” and will urge Congress to codify the measure into law.
“What we’re going to look to do is to seek to prevent new homes from being bought by large institutions that are taking the homeownership dream away from Americans and putting it on corporate balance sheets,” Pulte noted. “I feel very confident that he’ll [President Trump will] announce a couple of very good ideas [at the World Economic Forum] in Davos, and then we’ll see from there what he wants to do."