As housing affordability continues to challenge buyers nationwide, the idea of a 50-year mortgage is gaining attention. The concept is now being explored at the federal level as one possible strategy to help more Americans — especially first-time homebuyers — enter the housing market.

Recently, Federal Housing Finance Agency (FHFA) director Bill Pulte confirmed that the Trump administration is evaluating whether a 50-year loan could offer lower monthly payments and expand access to homeownership. While this type of mortgage is not yet available through government-backed channels, it is being discussed as part of a broader conversation around housing affordability solutions.

How a 50-Year Mortgage Would Affect Monthly Payments

One of the biggest potential advantages of a longer loan term is a lower monthly payment. For example:

• Median home price: $410,800

• Down payment: 10%

• Estimated monthly payment on a 50-year mortgage: approximately $2,007

• Estimated monthly payment on a traditional 30-year mortgage: about $2,269

Spreading payments over an additional 20 years reduces the monthly cost, which could make qualifying for a home easier for some buyers.

But the Trade-Off Is the Total Interest Paid

While a 50-year mortgage lowers monthly expenses, it significantly increases the overall cost of the loan.

• Estimated total interest on a 50-year loan: over $834,000

• Total interest on a typical 30-year loan: around $447,000

This means homeowners could end up paying nearly double the interest over the life of the loan. Critics argue that the structure benefits lenders more than borrowers and could leave homeowners paying on their mortgage well into retirement.

Does a 50-Year Mortgage Solve Affordability Concerns?

Many economists say the extended loan term does little to address the root causes of high housing costs, such as low inventory, rising construction costs, and competition from large investors.

In fact, corporate and hedge fund activity remains part of the national housing conversation. These groups are estimated to own roughly 3% of single-family homes across the United States, prompting discussion about limits or restrictions to help open the market to individual buyers.

What This Means for Buyers and the Real Estate Market

While the 50-year mortgage is still only an idea under consideration, it signals that policymakers are looking for creative solutions to boost homeownership. Some real estate professionals view it as a pro-buyer option, while others remain cautious about long-term financial impact.

If introduced, a 50-year mortgage would become one more financing tool available to buyers — but it’s unlikely to be a complete solution to affordability challenges.

As always, buyers should work closely with a trusted real estate agent and mortgage professional to understand how different loan programs impact monthly budget, long-term costs, and financial goals.

Source: Forbes, November 10, 2025