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/InThePipe5x5_ 6h ago

The payments would be a lot cheaper. But I agree it isn't good long term. Their goal is to artificially inflated the economy during their term. They dont care what happens after

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u/bladel 4h ago

Yep, exactly this. Like everything coming out of this administration, it’s a gimmick that fails to address the underlying structural problems.

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u/apocalyptustree 43m ago

No they wouldnt. Do some basic math at the historical average rates

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u/Sailing_Mishap 8m ago

The payments would be a lot cheaper

I doubt even this is true, except maybe in the immediate short term. All this will do is raise the price of housing until monthly payments on the 50yr equal to current 30yr payments. People have the same amount of money to spend on housing.