President Trump Floats Idea of a 50-Year Mortgage

Aimed at improving U.S. housing affordability issues, President Donald Trump introduced the idea of a 50-year mortgage loan, with FHFA Director Bill Pulte confirming shortly thereafter. While the plan seems unofficial – nothing has yet been posted on official White House websites – critics are arguing that homeowners would have to pay greater interest over time and savings on monthly payments would be negligible.  Additionally, under the Dodd-Frank Wall Street Reform and Consumer Protection Act, Fannie Mae and Freddie Mac are currently prohibited by law from purchasing or guaranteeing mortgages with terms longer than 30 years. 

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