In a recent Truth Social post, President Donald Trump has proposed that a new, 50-year mortgage plan be developed for young Americans to help them with purchasing real estate.
For years now, the housing market of the United States has been an issue that millions of young Americans have grappled with. With houses being so expensive and the cost of living growing higher and higher, it feels impossible for young Americans to realistically own their own homes. That is where the proposed 50-year mortgage plan would come in to help get young Americans’ feet through the door.
Trump posted the following message on Truth Social: “We hear you. We are laser focused on ensuring the American Dream for YOUNG PEOPLE and that can only happen on the economic level of homebuying. A 50 Year Mortgage is simply a potential weapon in a WIDE arsenal of solutions that we are developing right now. STAY TUNED!”.
The plan would lighten the burden of monthly payments made by the homeowner in exchange for having to pay more overall in interest as it accrues. The plan initially sounds good on paper until a key factor is recognized: the law.
According to the Qualified Mortgage rule within the Dodd-Frank Wall Street Consumer Protection Act, the federal government is not allowed to create a 50-year mortgage. If President Trump wishes to actually move forward with this proposal, it will require that this act be amended.
Some government officials have also come out and provided their thoughts about the plan.
Representative Green said in a social media post: “I don’t like 50 year mortgages as the solution to the housing affordability crisis. It will ultimately reward the banks, mortgage lenders and home builders while people pay far more in interest over time and die before they ever pay off their home. In debt forever, in debt for life!”
While there is a need to help young Americans secure home ownership, it is uncertain whether 50-year mortgages are the correct way forward.
