Emotions run high as Trump administration considers a half-century mortgage loan
The news over the weekend that the Trump administration may be favoring a 50-year mortgage term to combat affordability issues has drawn a wide range of opinions from the broker community.
Brokers who opposed the plan told Mortgage Professional America that the idea would delay the growth of home equity and potentially help inflate home prices, among other criticisms.
Those in favor of the plan believe that even building limited equity is better than not creating any at all, because customers would have been forced to keep renting instead. They also think it would help housing affordability.
Either way, it’s an issue that clearly has drawn an emotional response from mortgage brokers.
Those against: Plan is ‘disastrous’
Mike Wise, senior loan officer at Ruoff Mortgage, didn’t mince words when talking about the impact of a potential 50-year mortgage loan.
“It’s GUARANTEED to delay the accumulation of equity,” Wise told Mortgage Professional America. “Disastrous is an accurate description. This plan of Trump’s is just about as dangerous as Option ARMs, which was a major contributor to the debacle of 2008.”
Wise said one major problem is that those who would likely be the ones using a 50-year mortgage to afford a home are the ones who are in the worst position to be able to handle that type of loan.
“The homebuyers who will be most attracted to such a plan will be those who can least handle it,” Wise said. “It will simply cause more people to stretch their home price ceiling way beyond what they should be spending, because all they will focus on is their monthly payment.
“It will be just like the auto finance industry lengthening auto loan terms from 48 months to 60 months, then 72 months, then 84 months. Now, people making less than $50,000 a year are spending $75,000 on pickup trucks because they qualify for the monthly payment.”
Along those same lines, he believes that rather than people saving money with a 50-year mortgage, they would see themselves qualify for a larger loan rather than taking advantage of those potential savings.
“On a macro-level, a 50-year mortgage plan would be extremely inflationary,” he said. “It will cause millions of buyers, who only focus on monthly payment, to buy higher-priced homes than they should, creating more competition among buyers for the same home. We’ll be right back where we were in 2020-2021 with prices spiraling upward.”
James Hawkins, president of Golden Oak Lending, said the slow build of equity in a longer-term mortgage will also keep people stuck in homes.
“It’s a terrible idea,” Hawkins told Mortgage Professional America. “It will slow down the equity growth that makes owning a home so attractive. Buyers will be ‘locked in’ without the option to sell or refinance for at least 10 years, since you couldn’t recoup the costs of buying versus getting price appreciation. It would take 19 years to pay down 10% of your loan.”
Mark Gelbman, mortgage advisor with Union Home Mortgage, also noted that many side-by-side comparisons with a 30-year mortgage payment are using the same rate. He believes the rate on a 50-year mortgage would be quite a bit higher, making the savings less.
“Personally, I don’t see where this is worth even discussing,” Gelbman said.
Those for: Affordability is key
Despite the outpouring of responses against a 50-year mortgage, some were in favor. Gary Rocha of Patriot Real Estate in Huntington Beach, California, told Mortgage Professional America that it would be a useful option, even if it’s not for everyone.
“It’s just another option for buyers, not something buyers are required to do,” Rocha said. “How much interest they pay would be disclosed, and they could make their decision on the length of the loan they choose based on all the loan terms, including total interest over the life of the loan. Plus, they could always make larger payments to pay it off sooner if they wanted to, as they begin to make more money in the future. A 50-year loan is a great idea!”
RJ Baxter of Choice Mortgage Group says buyers are returning as rates drop, but uncertainty and pandemic-era rates still hold some back. He uses buydowns and net-worth comparisons to guide hesitant clients toward action.https://t.co/NflTAB64KO
— Mortgage Professional America Magazine (@MPAMagazineUS) November 8, 2025
Donna Price, president and broker at Price Team Lending, said any idea that could improve housing affordability is worth exploring.
“I think the addition of a 50-year mortgage is a great idea,” Price told Mortgage Professional America. “It is not for everyone and should only be used in situations where the borrower would not otherwise be able to buy. Any product that offers another avenue for home affordability for all is a plus in my book. And it can later be refinanced into a 30-year mortgage as the homeowner’s life situations change and/or rates come down.”
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