Understanding the 50-Year Mortgage and Its Implications

FILE – A “For Sale” sign outside a house in the Capitol Hill neighborhood of Washington, DC, US, on Tuesday, Aug. 12, 2025. Photographer: Al Drago/Bloomberg via Getty Images

Amid a slumping housing market, President Donald Trump over the weekend floated the idea of introducing a 50-year mortgage – and appears to have the support of the federal housing agency.

Here’s what’s being said about the idea:

50-Year Mortgage: What You Need to Know

On Saturday, Trump posted on social media a meme introducing the idea of a 50-year mortgage, as President Franklin D. Roosevelt introduced the 30-year mortgage.

William Pulte, director of the Federal Housing Finance Agency, reposted the meme saying his agency was “indeed” working on a 50-year mortgage – calling it a game changer.

“We are also working on ways to give relief in the 5 year mortgage, the 10 year mortgage, and the 15 year mortgage,” Pulte added in another post on X.

A 50-year mortgage would make affording a home more attainable for some Americans, as it would lower the monthly payment.

A longer mortgage means the homeowner has a longer time to spread out his or her repayment of the loan, in a process known as amortization. The process includes a fixed monthly payment in conjunction with the interest repayment.

Longer mortgages come with higher interest rates and repayments, meaning the homeowner would pay a higher total cost for the house over time than a homeowner with a shorter mortgage.

For a sample $400,000 loan with a 6% interest rate, a simple comparison using an amortization calculator shows you’d get a monthly mortgage payment of $2,398 under a 30-year loan, and $2,105 under a 50-year loan. Those numbers do not include taxes or insurance.

The interest paid under a 30-year loan calculates to $463,352, and calculates to nearly double that at $863,371 under a 50-year loan.

RELATED: Potential homebuyers are giving up, survey finds

The Current State of the Housing Market

Homeowners are falling behind on mortgage payments in these states

A new study reveals that more people are starting to fall behind on their mortgage, as costs that come with buying a home, such as taxes and insurance, rise faster than many people can keep up with. Melissa Cohn, Regional Vice President of William Raveis Mortgage, joined LiveNOW from FOX to discuss.

The U.S. housing market has been in a slump since early 2022, when mortgage rates began to climb from pandemic-era lows. Home sales fell last year to their lowest level in nearly 30 years. They’ve remained sluggish so far this year, as elevated mortgage rates and rising prices keep would-be homebuyers on the sidelines.

As of April, the U.S. housing market had nearly 34% more sellers than buyers shopping for a home, according to an analysis by Redfin.

READ MORE: Home sellers outnumber buyers by record amount: What that means for prices

Understanding Assumable Mortgages

An assumable mortgage is a mortgage that can be transferred to another person. A buyer could purchase a home by taking over the seller’s mortgage.

On Sunday, Pulte also talked on social media about assumable mortgages. He responded to a suggestion to make mortgage rates assumable, saying, “At Fannie and Freddie, we are evaluating how to do assumable or portable mortgages, in a safe and sound manner.”

Fannie and Freddie refers to Fannie Mae, the Federal National Mortgage Association, and Freddie Mac, the Federal Home Loan Mortgage Corporation. Pulte oversees both agencies.

Fannie and Freddie, which have been under government control since the Great Recession, buy mortgages that meet their risk criteria from banks, which helps provide liquidity for the housing market. The two firms guarantee roughly half of the $12 trillion U.S. home loan market and are a bedrock of the U.S. economy.

Conclusion

The introduction of a 50-year mortgage and the concept of assumable mortgages are significant developments in the U.S. housing market. While a 50-year mortgage may make affording a home more attainable for some Americans, it also comes with higher interest rates and repayments. As the housing market continues to slump, it is essential to understand the implications of these developments and how they may impact the market and homebuyers.

Frequently Asked Questions

Q: What is a 50-year mortgage?

A: A 50-year mortgage is a type of mortgage that allows homeowners to repay their loan over a period of 50 years, rather than the traditional 30 years.

Q: How does a 50-year mortgage work?

A: A 50-year mortgage works by spreading out the repayment of the loan over a longer period, resulting in lower monthly payments. However, it also means that the homeowner will pay more in interest over the life of the loan.

Q: What is an assumable mortgage?

A: An assumable mortgage is a mortgage that can be transferred to another person. A buyer could purchase a home by taking over the seller’s mortgage.

Q: How do assumable mortgages work?

A: Assumable mortgages allow a buyer to take over the seller’s mortgage, including the interest rate and repayment terms. This can be beneficial for buyers who want to avoid current market rates or for sellers who want to make their home more attractive to potential buyers.