Trump’s 50-Year Mortgage Proposal Explained | Metro Detroit Real Estate Market Update by Jeff Duneske, Northville Realtor®

November 9, 2025 | Trump’s 50-Year Mortgage Proposal Explained | Metro Detroit Real Estate Market Update by Jeff Duneske, Northville Realtor®

In a surprise move that stirred up the housing market conversation this weekend, President Trump suggested a 50-year mortgage plan to make homeownership more affordable.

The idea was shared on social media, and while details remain unclear, FHFA Director Bill Pulte later confirmed that a 50-year mortgage concept is being explored, calling it a “complete game-changer.”

But can it actually happen, and would it help or hurt homeowners?

How a 50-Year Mortgage Would Work

The concept is straightforward: extend your mortgage term to 50 years to lower your monthly payments.

Here’s a quick comparison at a 6.575% interest rate with 20% down:

• $300,000 home

  • 30-year: $1,529/month

  • 40-year: $1,418/month

  • 50-year: $1,366/month

• $500,000 home

  • 30-year: $2,548/month

  • 50-year: $2,277/month

That’s a reduction of about $270/month but stretched across two extra decades.

While monthly affordability improves, homeowners would build equity much more slowly and pay significantly more in total interest over time.

The Legal Hurdle: Dodd-Frank and Qualified Mortgage Rules

Following the 2008 financial crisis, Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act, which introduced the Qualified Mortgage (QM) rule.

That rule sets strict standards on loan terms, capping them at 30 years. Anything longer than that isn’t considered a Qualified Mortgage, which means lenders can’t sell those loans to Fannie Mae or Freddie Mac.

To make a 50-year mortgage widely available, Congress would need to amend the Dodd-Frank Act, or federal agencies would need to update their regulations and definitions.

What Are Non-QM Loans?

If 50-year loans don’t qualify under current law, they could still appear as Non-QM (Non-Qualified Mortgage) products.

A Non-QM loan is a mortgage that doesn’t meet federal “Qualified” standards. These are often used by:

• Self-employed borrowers

• Real estate investors

• Buyers with non-traditional income sources

They typically come with:

• Higher interest rates (to offset lender risk)

• Flexible income verification (bank statements, rental income, etc.)

• Longer amortization options (such as 40- or possibly 50-year terms)

While Non-QM loans expand access, they’re not federally guaranteed and can be harder to refinance or sell on the secondary market.

Expert Reactions

Housing analysts have mixed opinions.
Some believe longer-term loans could help first-time buyers break into the market. Others warn that it could further inflate prices and delay the market’s natural balance between wages and home values.

As HousingWire’s Lead Analyst, Logan Mohtashami put it:

“We have affordability challenges, but extending amortization to 50 years isn’t the solution. It delays price corrections and limits equity growth.”

What This Means for Metro Detroit Buyers and Sellers

For local markets like Northville, Novi, South Lyon, and Plymouth, this discussion highlights how quickly housing policy can shift and emphasizes the importance of planning your next move strategically.

If 50-year loans were ever approved, they could:

• Lower the monthly cost of entry for buyers

• Reduce equity growth and long-term wealth building

• Encourage demand at a time when inventory is still tight

As of now, this proposal remains just that: an idea. But it’s an important one to watch as affordability continues to challenge many Metro Detroit homebuyers.

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