"Federal Housing Finance Agency Director Bill Pulte reportedly mentioned the idea to President Donald Trump last weekend leading Trump to post about the idea on Truth Social. However, sources told CBS News this week that a 50-year mortgage plan hadn't been vetted by senior Trump administration officials and wasn't ready for release. Leaders across mortgage and real estate were almost uniformly against the idea."
"While a 50-year loan may offer lower monthly payments, experts including HousingWire's Logan Mohtashami warn that extending repayment over five decades increases total interest costs and could leave households carrying debt far later into life. But younger buyers might still be interested. A new poll of 1,000 U.S. adults from Badcredit.org found that 45% would consider taking out a 50-year mortgage with sharp divides by age, gender and political affiliation."
"Researchers said the trend may reflect economic realities of younger adults facing high housing costs and elevated student loan debt making long-term financing more appealing. Older respondents, many of whom purchased homes under different market conditions, were more likely to view extended terms as a long-term financial burden. In limited situations, a 50-year mortgage can benefit prospective homeowners, said Erica Sandberg, consumer finance expert at BadCredit.org."
A proposed 50-year mortgage idea was mentioned to President Trump and posted on social media, but the plan had not been vetted by senior administration officials and was not ready for release. Mortgage and real estate leaders largely opposed the proposal. Experts warn that extending repayment to 50 years lowers monthly payments but substantially increases total interest and can keep households in debt much longer. A BadCredit.org poll of 1,000 U.S. adults found 45% would consider a 50-year mortgage, with 54% of millennials open to it and only 29% of Baby Boomers receptive. Limited situations and potential refinancing could make such loans beneficial for some borrowers.
Read at www.housingwire.com
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