While most brokers panned the suggested half-century mortgage, some offered ways to make it work
Despite backlash on social media platforms like LinkedIn, the Trump administration’s idea for a 50-year mortgage remains a possibility.
Kevin Hassett, director of the National Economic Council, mentioned it again on Wednesday, although he stated that Trump hadn’t made a final decision on it.
While the majority of brokers who reached out to Mortgage Professional America dismissed the idea, some had interesting ideas about how a 50-year mortgage might work.
Gret Uttal, president of Cyberlink Software Solutions, has been in the mortgage industry for more than 40 years. He said it’s not the first time the idea has been floated. He said the important thing a 50-year mortgage would allow is bringing a new wave of customers into homeownership.
“Anyone buying with a 50-year mortgage most likely will not hold the house forever,” Uttal told Mortgage Professional America. “A 50-year mortgage is a stepping stone to bigger and better things. Like many other mortgage products, a 50-year mortgage would be one more option to get into the home ownership game sooner rather than later. I believe it is a good thing.
“Can you imagine if we had 50-year mortgages when rates were in the 3s. Anyone who had a 50-year mortgage would be happy they borrowed when they did. Buying a house is not about timing the market. It is about getting in on the ground floor of home ownership.”
Uttal feels that once those borrowers are in the market, there will be options like refinancing and extra payments that can help them shorten the term.
“Buy now, borrow with an interest-only loan, ARM, GPM, combo 1st and 2nd, just get in the market if you can afford the payments,” Uttal said. “Once you are in the market, you have the potential for appreciation, refinance if rates come down, make larger monthly payments if your income goes up, tax advantages and more. Many lenders will let you set up a bi-monthly payment, which is another way to lower the interest costs.”
AI loan recasting?
Along the same lines, one respondent suggested that artificial intelligence could help make a 50-year mortgage loan more workable.
Deborah Lee Switts, CEO and founder of Good Friend Mortgage, offered a creative solution to allow the borrower to reduce the term of their mortgage: AI loan recasting.
“After the first 24 months of paying mostly all interest, allow an option on each monthly payment to apply extra toward the principal in $50.00 increments,” Switts told Mortgage Professional America. “Then, allow servicing to re-amortize or recast as principal lowers. It would be easy with AI software and would allow the personalization of mortgage management, and they could see the immediate changes to the amortization schedule.”
She also suggested continued tax deductions for interest paid and an expansion of the ability-to-repay (ATR) requirements for both consumer loans and small business mortgage loans. She also proposed setting up a balloon payment at 30 years, with a 30-year note amortized over 50 years.
In the end, she believes the key is to help these lifelong renters achieve homeownership, even if equity gains are limited early on.
“I think we all agree home equity from appreciation is far better than no equity at all derived from renting,” Switts said. “Earlier attainment of a home allows for more homeownership and more stability to local communities, schools, and employers.”
Allowed on a limited basis
Some who thought a 50-year mortgage should be allowed felt it should be used only on a limited basis.
Deb Veilleux of Starlink Realty, Inc, in Florida, feels it shouldn’t be an option for a new home purchase but should be used only as a refinance tool to help rescue borrowers from potential default and foreclosure.
As debate over a 50-year mortgage heats up, Mike Wise of Ruoff Mortgage and James Hawkins of Golden Oak Lending warned it could trap buyers in long-term debt, while Donna Price of Price Team Lending viewed it as a flexible tool to expand homeownership.https://t.co/dYbMY5EYz2
— Mortgage Professional America Magazine (@MPAMagazineUS) November 10, 2025
“I think that is an appropriate use of the extended term,” Veilleux told Mortgage Professional America. “To use it as a tool to get people into a house might be a tempting trap. To use it as a tool to help someone rescue their situation with a modification to 40 years would be a compassionate solution. That would allow a person a last-ditch second chance to restructure their loan.
“It may seem unwise to get into a loan that long, but the payment reduction might be necessary in a situation. That could be the only way that person could qualify and would give them a chance to keep the house or to get back on track.”
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