Republicans are hating on Trump's 50-year mortgage idea. Here's why some think it will 'ultimately reward the banks'

President Trump seems to love comparing himself to historic leaders, and this time he’s invoking Franklin D. Roosevelt.

In a post on Truth Social, Trump suggested that, just like FDR had introduced the 30-year mortgage during the Great Depression, it was now his turn to fix America’s housing crisis by introducing a 50-year mortgage (1).

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But almost instantly, the proposal came under attack from all sides. Mortgage brokers called it impractical, economists called it ineffective and even some Republicans — including members of Trump’s own administration — called it a bad idea (2).

The backlash has been swift and revealing. While millions of Americans are currently priced out of homeownership and desperate for relief, many believe the 50-year mortgage not only doesn’t solve the problem, it could actually make things worse.

Why the idea is falling flat, even among Trump allies

Trump’s pitch was simple: longer mortgage terms mean lower monthly payments. But experts say that extra time comes at a serious cost, and not just in interest.

A 50-year mortgage could saddle homebuyers with decades of extra payments, leave them with less equity, and still potentially cost them as much per month as shorter-term loans due to higher interest rates.

The 50-year term might shave a few hundred dollars off monthly payments compared to a standard 30-year loan. But over time, it could cost tens of thousands more in interest while building equity at a much slower pace. That’s not much relief for something that could keep families in debt for half a century.

Republican Congresswoman Marjorie Taylor Greene — who’s been feuding with Trump over numerous issues — took to X to express her displeasure with the 50-year mortgage idea (3).

“It will ultimately reward the banks, mortgage lenders and home builders while people pay far more in interest over time and die before they ever pay off their home,” she wrote in her post.

“In debt forever, in debt for life!”

When it comes to Republicans voicing displeasure over the 50-year mortgage proposal, Greene is far from alone. POLITICO reports that several White House staffers, speaking on background with the publication, are quietly blaming Federal Housing Finance Agency Director Bill Pulte for convincing Trump to float the idea, angering business leaders and many of Trump’s allies in the process (4).

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Is the housing market really that bad?

While the 50-year mortgage plan is drawing heat, it taps into a very real crisis, as many American homebuyers are suffocating under high interest rates and record-high prices.

The national median home price is now about $415,000, according to the National Association of Realtors (5). And with mortgage rates hovering above 6%, even modest homes are becoming unaffordable for a lot of buyers. A typical homeowner would now need to spend about 45% of their income to buy a median-priced home, according to Realtor.com (8), and that’s well above the long-standing 30% affordability rule.

With this in mind, it’s easy to understand why buyers are desperate. But experts warn that adding two more decades to a mortgage doesn’t address many of the crucial factors stacking up against buyers: low inventory, rising prices and elevated borrowing costs.

If not 50 years, then what?

A 50-year mortgage may sound like a creative hack, but in reality it may create more problems than it solves. Instead of getting swept up in potentially unrealistic proposals, buyers have plenty of options that can either lower their housing costs or help with making homeownership more attainable.

Here’s what to consider:

Renting may be more cost effective

In many markets, monthly rents are lower than mortgage payments (7). Renting also gives you flexibility and keeps you from sinking your savings into a home that may not appreciate quickly.

FHA, VA and USDA loans can help

Government-backed mortgages can offer real relief. FHA loans require as little as 3.5% down — depending on your credit score — while offering more flexible credit requirements (8). VA loans offer 0% down for military members and veterans. USDA loans also offer 0% down payments for qualified buyers in rural and suburban areas (9). All of these programs have lower interest rates than conventional loans.

Consider waiting out the market

If prices or rates are still too high, waiting may be the best move. Financial planners often stress the importance of being ready, not rushed, when purchasing a home. Since timing the housing market can be tough, being mentally and financially prepared can make all the difference when conditions shift.

For now, the standard 30-year mortgage remains the mainstream solution for a reason: it balances affordability with equity growth and financial flexibility. Instead of waiting for a moonshot policy, buyers should focus on what they can control: their budget, their timing and their choices.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Truth Social (1); The Hill (2); X (3); POLITICO (4); National Association of Realtors (5); Realtor.com (6); Remax (7); Rocket Mortgage (8); Fairway Home Mortgage (9)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.