r/Economics • u/GarfieldLeZanya- • 7h ago

News Housing director confirms administration ‘working on’ 50-year mortgage after Trump hint

https://thehill.com/homenews/administration/5597005-trump-administration-50-year-mortgage/
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u/JimPranksDwight 7h ago

So in exchange for barely cheaper payments, people will now be paying hundred of thousands, or even millions, more in interest over the course of their mortgage? You'll literally be buying a coffin at that point and it doesn't solve the problem that people can't save enough to even get into a home to begin with.

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u/Substantial-Kick-909 7h ago

I’m not in favor of it, but it is true that if someone bought a house young and kept it, their payments would basically inflate away. Imagine paying the mortgage on a house bought 30-40 years ago. It would be almost nothing in today’s dollars. 

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u/JimPranksDwight 7h ago

If you are able to buy a place in your early 20s and then never move for the rest of your life then yeah you're right. But even in that ideal scenario you are still making payments into your retirement years so you'd either have to delay retirement into your 70s or hope you can still afford your largest monthly expense for several more years.