Is a 50-year mortgage really that much crazier than a 30-year one?

"Last week, President Trump caused a media frenzy after he floated the idea that the government should back the creation of a 50-year fixed mortgage. Many commenters, including some of Trump's own supporters, hated the idea. They complained that it would result in Americans being in debt for their entire adult lives, essentially renting from a bank. They complained that this type of mortgage would explode the amount of interest homeowners would have to pay over the lifetime of their loans."

"They complained that borrowers would be stuck paying interest-only payments for many years and be prevented from actually paying down their principal and building equity in their homes. "It will ultimately reward the banks, mortgage lenders, and home builders while people pay far more in interest over time and die before they ever pay off their home," posted Rep. Marjorie Taylor Green (R-Ga.). "In debt forever, in debt for life!" President Trump "is creating generational debt," said Josh Johnson on The Daily Show."

"Sure, it won't solve our housing affordability problem. But is a 50-year mortgage really such a crazy idea? "It's not quite as outlandish as it sounds," says John Campbell, an economist at Harvard University. "Honestly, I kind of think it's a fine idea," says Eric Zwick, an economist at The University of Chicago Booth School of Business. "It's not obviously so different from a 30-year fixed mortgage.""

President Trump proposed that the government back a 50-year fixed mortgage, prompting widespread backlash. Critics warned the loan would leave Americans indebted for most of adulthood, inflate total interest payments, and enable long periods of interest-only payments that delay principal repayment and home equity accumulation. Opponents argued the policy would reward banks, mortgage lenders, and home builders while imposing multi-generational debt. Reporting indicated White House anger at the official who pitched the idea. Some economists defended the concept, noting it is not radically different from a 30-year fixed mortgage and that many homeowners refinance or pay off loans before term.

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