B
enzinga and Yahoo Finance LLC may earn commissions from the links below. On r/realestateinvesting, many users criticized a 50‑year mortgage proposal tied to former President Donald Trump. While some see a short‑term relief in monthly payments, most argue it fails to address housing affordability. One commenter called it “a terrible idea,” noting that mortgage calculators show only a modest payment drop but astronomically high total interest.

    Proponents point to improved cash flow: a 50‑year term spreads payments, potentially easing the burden on rental‑income investors. One user remarked that a fixed payment over five decades could be advantageous as money’s value erodes. However, the trade‑off is steep. A $500,000 loan at 6.22% over 50 years would generate roughly $1.13 million in interest—about $523,000 more than a 30‑year loan. Early equity buildup is minimal, increasing the risk of being underwater if property values fall. One comment warned of a decade‑long underwater period if refinancing is blocked.

    Broader market concerns also surfaced. Lower monthly costs could enable more buyers, possibly inflating prices further. “Banks win while home prices rise with inflation,” one user wrote. Another summed up the sentiment: “This is a bad idea that doesn’t solve the affordability problem.” Many agreed that the plan would boost mortgage‑company profits but worsen the cost of homeownership.