Posted on 11/10/2025 6:56:25 AM PST by Red Badger
President Trump likes to test policy proposals on social media.
This was his newest one, shared by Bill Pulte, the U.S. Director of Federal Housing and the chairman of Fannie Mae and Freddie Mac 👇
Thanks to President Trump, we are indeed working on The 50 year Mortgage - a complete game changer. https://t.co/HZDPzO0qJG— Pulte (@pulte) November 8, 2025
A 50-year mortgage would result in a slightly lower monthly payment, stretched out over 5 decades, with hundreds of thousands of extra dollars in interest.
The reactions were not kind.
But they were funny!
MANY TWEETS AT LINK>........................
I think it's safe to say that this proposal might end up in the "no-go" category.
(Excerpt) Read more at notthebee.com ...
Fanny Freddie are g’vt companies.
On X, 99% of Tweets about this are calling the 50-year mortgages “Jewish finance,” “Jewish bankers making Trump push this,” etc. What a cesspool that place is now. Can I flush my algo to just not see these, or does everyone get it?
X has been putting a lot of dem posts in my feed ... I’ve blocked Gavin NewScum’s press office TWICE, now.
“So - what a buyer using a 50 yr would find? They’ve built *very little* additional equity after 5 years because the amortization schedules ALWAYS weight towards the interest first. “
You don’t build equity in the loan. You build equity in the home.
Using $400k loan and the 6.5% for 30yrand 7% for 50yr you save about $1200 a year in paments. Invest in CD’s and that gets over $6k over 5 years,
The difference in payoff is about $1.5k.
Thus, taking out the 50 year gives you more cash to “upgrade”.
I actually should have re-phrased that: A Two Adult home. When a single person with kids tries to buy a home, they are saddled with a single income AND daycare. That makes it nearly impossible
Yes, in the 1950s a person could buy a home on a single income. But it could have been equally difficult when annual incomes were less than $10k a year.
I remember laughing with my Dad about his $83 mortgage payment. My first car payment was $88. He looked at me and said that there were months where coming up with that $83 was tough.
I guess my point is that the American Dream that a lot of these people are chasing is based on a culture that is disappearing. A lot of that has to do with the degradation of the US family unit.
I read on the BBC that 50 year mortgages are common in Europe particularly in areas with affordability issues. Typically only interest is paid, and debtors switch to a different loan after 7-10 years, on average. Not sure why everyone is freaking out over this proposal.
“Not sure why everyone is freaking out over this proposal.”
Because Trump...............
I pay no attention to them...............It’s what they want............
I pay no attention to them...............It’s what they want............
The problem with increasing home supply, outside of redeveloping areas where homes previously existed, is that it takes up valuable farm land. I’m living on what used to be a golf course, just over the county line from the larger city and its suburbs. The evidence is strong that adding all these homes out here has created some traffic nightmares, and the suburban community next to me is a perfect example of that.
Sprawl is a problem as well, especially when they want to cram as many houses into a small area as possible.
My philosophy back when we had a mortgage was simple…
Take the 30 and pay it off in less time than the 15 with extra principle payments.
… but if hard times hit before it is paid off - loss of job, disability, death of spouse - you are only required to make a far smaller payment until the problem is resolved.
Been an extremely long time since since we’ve had any personal debts, but if starting today with a home purchase, I’d take the 50 and pay it off far faster than a 15, while guarding potential risks.
Before everyone gets all worked up over this try to remember that the average American moves every 5-7 years. Almost nobody pays off a mortgage anymore. And you get to deduct the interest from your tax return every year.
In the early 50’s we lived in a 2BR, 850 sqft home.
Me and my three siblings in one BR.
For a time, one of my grandmothers fell on hard times making it five in that very small room.
“And you get to deduct the interest from your tax return every year.”
It is deductible but not applicable for many as the standard deduction is so high.
I remember a bozo in the 70s who bought a truck and attached it to his 30-year house mortgage.
Well, it turns out we kind-of-sort-of agree. I have been counseling many to advance "principal only" payments which so amazingly lessen the aggregate interest paid over the life of a mortgage.
After all, the root of "mortgage" is "death" -- in this case of paying someone else for yesterday.
U.K.: The traditional term for a mortgage was 25 years, but longer terms have become increasingly popular, especially among first-time buyers. The average term for a first-time buyer is now around 31 years, and some lenders offer terms up to 40 years to make monthly payments more affordable.
Germany: Mortgages are often structured with initial fixed-interest periods of 10 to 15 years, with the overall loan designed to be repaid over 25 or 30 years. Borrowers often make extra payments to reduce the term or refinance the remaining debt after the fixed-rate period ends.
France: The maximum mortgage term is generally set at 25 years by regulators, though terms between 15 and 20 years are most common for approximately 50% of borrowers. French mortgages typically involve a fixed interest rate for the entire duration of the loan.
So where in Europe are your 100 year mortgages???
That’s true but its there if you need it.
The main thing is that a 50 year mortgage is not a big deal. Mortgage loans come and go with economic cycles. I was in the business for 28 years. Things come and go.
“We need to increase wages and bring housing costs down.”
We need necessary but painful housing price deflation in those local markets that have had the most price inflation the last 20 years.
We need inflation to continue down so that a wages can catch up. That is a difficult needle to thread because some portion of wage increases make for business cost increases which can trickle back into price inflation. That will require efforts by government policy to bring down other business costs, like taxes and energy.
But that’s my point!
On a 50 year? Your payments are barely a trickle towards equity in the home. They’re HIGHLY HIGHLY weighted towards paying the interest.
I will reiterate there might be a few people who would play with rates and *might* consider something like this, but this is NOT going to be a standard thing.
My son and DIL have a 2.75 over 30 - and aren’t even bothering with pri-pays anymore. But - we aren’t seeing sub 3 mortgages ever again. People cry over 6% — but even that is historically fairly low (or at least average).
The math *rarely* works out in the manner you suggest.
All of which is really besides the point - most of the people taking a theoretical 50 are people who trying to afford payments.... and they’re the people who will be shocked to find they’re being skinned alive.
Your math simply does not work in all but the once-in-a-lifetime rare situation where someone well-capitalized and financially astute finds a sweet spot.
Those situations simply do not come around very often.
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