AP analysis shows 50-year loans may cost buyers far more than traditional mortgages
Mortgage borrowers considering the White House’s floated 50-year loan option could end up paying nearly $400,000 more in interest compared to a standard 30-year mortgage, according to a recent analysis by the Associated Press.
While the proposal aimed to address the nation’s home affordability crisis, critics argued it would do little to resolve deeper market issues and could ultimately leave homeowners with staggering long-term costs.
Interest costs dwarf monthly savings
The AP’s calculations found that, based on a median United States home price of $415,200 and a 10% down payment, a 50-year mortgage at the current average rate of 6.17% would reduce monthly payments by about $266 compared to a 30-year loan.
However, that modest monthly relief comes at a steep price: “A borrower would pay, roughly, an additional $389,000 in interest over the life of a 50-year mortgage compared to a 30-year mortgage,” the AP analysis concluded. That figure assumes lenders would not charge a higher rate for the longer-term product—a scenario many economists doubt.
John Lovallo, an analyst with UBS Securities, reached a similar conclusion. “Extending a mortgage from 30 years to 50 years could double the (dollar) amount of interest paid by the homebuyer on a median priced home over the life of the loan and significantly slow equity accumulation,” Lovallo wrote.
Rebecca Richardson, a Charlotte-based mortgage broker, crunched the numbers: “If you borrowed $425,000 at 6.5% over 30 years, you’d pay $542,064 in interest. Over 50 years, you’d pay $1,012,478. That’s an extra $470,414 just to lower your monthly payment by $290. You’re not saving money… you’re just dragging out the debt,” Richardson told Mortgage Professional America.
Trump’s proposal for 50-year mortgages aims to ease monthly payments but raises questions over total interest and long-term affordability. Industry experts caution that longer terms don’t automatically solve housing challenges. https://t.co/afDanJH9IG
— Mortgage Professional America Magazine (@MPAMagazineUS) November 11, 2025
Equity buildup slows to a crawl
The extended timeline means borrowers would build equity at a glacial pace. According to the AP, it would take 30 years to accumulate $100,000 in equity on a 50-year loan, compared to just 12 to 13 years on a 30-year mortgage—excluding home price appreciation and down payment.
“It’s typically not a goal of policymakers to pass on mortgage debt to a borrowers’ children,” said Mike Konczal, senior director of policy and research at the Economic Security Project.
Critics warn that slower equity accumulation could leave homeowners vulnerable if home prices fall, increasing the risk of negative equity and default. The experience of the 2008 financial crisis showed that borrowers with little equity are far more likely to walk away from their homes in downturns.
Critics question impact on affordability
Industry leaders and economists were quick to point out that longer loan terms do not address the root causes of the affordability crisis, such as limited housing supply and high construction costs. “Many of the big things that would address supply right now are going in the wrong direction,” Konczal said.
Bill Pulte, director of the Federal Housing Finance Agency, called the 50-year mortgage “a complete game changer” for homebuyers, but others warned it could fuel home price inflation by enabling more buyers to enter an already tight market.
Regulatory hurdles remain
Under current law, Fannie Mae and Freddie Mac cannot insure mortgages longer than 30 years, meaning any 50-year product would be considered a “non-qualifying mortgage” and harder to sell to investors. Congressional action would be required to change this, and there appears to be little momentum for such a move.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
