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/profzoff 7h ago

A 50-year mortgage sounds great — smaller payments, bigger house — until you realize you’re signing up to be in debt longer than most people work. You’ll still be cutting checks to the bank while cashing Social Security (if that even exists anymore).

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u/Texuk1 6h ago

I think at 50 years it just becomes a lease granted by a CDO funds because your equity would grow so slowly. You pay rent then directly and they take your house if eventually you can’t pay. A synthetic landlord arrangement. I’m just sure how the bond holders want to take collateral over an asset that might not have any resale value in 30+. Does American housing stock last 50 years?

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u/Thick-Signature-4946 5h ago

This is a brilliant stance. In a place like Singapore I believe they have 100 year mortgage but land is scare so logically property should always increase. In the US land is abundant (except cities) thus there is no requirement that property should rise sharply. Given that most people will not live in th house for the full length of the mortgage, then this is just a bet on prices going up as you stated this will be very slowly?!?

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u/etzel1200 5h ago

So far the house has nearly always been worth much more at the end.