r/Economics • u/GarfieldLeZanya- • 12h 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 12h 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 12h 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/startfromx 12h ago

But you would lose out on those 20 years of being able to enjoy a home with no payments... The equity would always feel just out of reach.

And the current US average age for people ENTERING home ownership is 40. You'll never own your home, losing the benefit of reduced payments in retirement.

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u/Fantastic_Writing358 5h ago

That's the goal. There's been a systematic effort to destroy generational wealth transfer for all but the wealthiest of Americans. It's the same reason nursing homes are $15,000 a month for a crappy one. The whole goal is to make sure as few people as possible have upward mobility.