Trump Housing Secretary Scott Turner notes 50-year mortgage plan needs 'more research'

WASHINGTON, DC: Housing and Urban Development Secretary Scott Turner said on Sunday, December 28, that more analysis is required before the Trump administration moves forward with a proposal to offer 50-year mortgages to homebuyers.

The idea, backed by President Donald Trump last month, is intended to address rising housing costs by spreading payments over a longer period.

Turner said that the proposal remains one of several options under consideration as the administration looks for ways to improve housing affordability.

50-year mortgage proposal still under review 

Turner addressed the proposal during an appearance on Fox News’ 'Fox & Friends Weekend', where he emphasized that the idea is still in its early stages. “It’s very early. I think more research needs to be done on the 50-year mortgage,” Turner said.

The president publicly backed the idea in November as housing prices and monthly ownership costs continued to climb.

A 50-year mortgage will reportedly allow buyers to repay loans over 600 monthly payments, compared with the standard 360 payments under a 30-year mortgage.

Federal Housing Finance Agency Director Bill Pulte also said in November that his office is “working on” a potential plan to introduce such a mortgage product. Turner said that the longer-term loan is part of a broader set of ideas aimed at increasing access to homeownership.

“At the end of the day, the president and the other leaders in the administration will discuss what the best possible secure path to help the American people afford a home,” he said.

During the interview, host Griff Jenkins pressed Turner for specifics about whether the administration plans to move forward with longer mortgage products or ease zoning restrictions.

Turner responded that multiple strategies are being discussed, including interest rates and regulatory changes.

“There are myriad of ideas that have been discussed, from mortgage, obviously, from interest rates, to cutting red tape,” Turner said.

He also highlighted existing programs, noting that HUD has helped more than one million first-time homebuyers through Federal Housing Administration and Ginnie Mae programs this year.

Affordability pressures and criticism of longer loan terms 

The proposal comes as housing costs continue to outpace overall inflation. According to the Bureau of Labor Statistics, the cost of shelter rose 3 percent over the past year as of November, exceeding the overall inflation rate of 2.7 percent.

The Census Bureau reported that median monthly owner costs for homeowners with a mortgage increased 3.8 percent from 2023 to 2024.

Supporters argue that extending mortgage terms could lower monthly payments and make homeownership more accessible, particularly for younger Americans who reportedly increasingly view buying a home as unattainable. 

However, critics warn that longer loans could significantly increase the total cost of homeownership.

A spokesperson for the Mortgage Bankers Association said last month that “our concern is that any affordability benefit derived from expanding the mortgage term to 50 years would be offset by increased borrower risk and slower borrower equity growth resulting from the extended amortization period.”