The 50-Year Mortgage… Smart Solution or Short-Term Band Aid?

The recent suggestion of the 50-year mortgage is generating buzz in the real estate industry. The Trump Administration recently announced it is working on a plan to improve affordability by allowing buyers to qualify more easily through extending the amortization schedule. But the real question is: will the plan actually make housing more affordable?

Housing affordability has been a hot topic lately. Rising home prices and elevated mortgage rates have pushed many buyers to the sidelines. Meanwhile, sellers are holding onto ultra-low pandemic-era mortgage rates, further tightening an already constrained housing market.

On paper, the plan sounds promising. Extend the term, lower monthly payments, and increase affordability.

For example, a median-priced home in the Twin Cities ($390,000 as of November 2025) would see a $256 lower monthly payment on a 50-year mortgage, about a 12 percent savings.

The tradeoff is slower equity growth and roughly $351,000 more in lifetime interest compared to a 30-year mortgage.

Pros include lower monthly payments, which spread the cost over more years and improve short-term affordability; increased buyer power, allowing some buyers to qualify for homes previously out of reach; and a potential affordability tool that could help first-time buyers enter high-priced markets and begin building equity, albeit slowly.

Cons include much slower equity growth, meaning homeowners may take years to become net positive; significantly higher lifetime interest costs; diminished wealth creation, as homeownership is a key driver of net worth and a 50-year term delays that benefit and may extend debt well into retirement; reduced mobility and turnover, as slower early equity can make homeowners feel locked in and delay major life decisions; and the risk of appreciation inflation, where easier qualification increases demand, potentially pushing prices higher and prolonging the housing affordability crisis.

The big picture is that while a 50-year mortgage lowers monthly housing costs, it weakens long-term financial gain and equity growth. It may help first-time buyers get in the door, but it does not address the core issue driving the affordability crisis: a lack of housing supply.

What do you think? Is this a smart policy move, or a temporary fix that creates new problems down the road?