The concept of a 50-year fixed-rate mortgage is gaining discussion as a potential policy measure to address current housing affordability issues. This proposal outlines the primary pros and cons of such a long-term loan structure to assess its overall viability and impact on homebuyers and the housing market.

https://francoisentrepreneur.org

The Proposal: A 50-Year Plan is a“Game Changer”

Let’s talk about what is being proposed today.

The Federal Housing Agency (FHA, under Director Bill Pulte) is working on a proposal to extend the standard mortgage from 30 years to a staggering 50 years. Pulte even said, and I quote, “We are indeed working on the 50-year mortgage, a complete game changer.” President Trump supports the idea, and the pitch is very simple, very seductive: It will lower monthly payments and make housing feel more affordable.

But I have to tell you, that’s just a pitch. When they say “lower monthly payments,” it does not tell the full story. Not even close.

I want to show you what the perceived benefit actually looks like, and then what it really costs you. We’re going to look at the pros and, more importantly, the cons.

https://francoisentrepreneur.org