Source: Ludwig von Mises Institute
by Ryan McMaken
“The politics behind the new proposal are fairly straightforward. Trump will promote the 50-year mortgage as a more affordable alternative to the 30-year mortgage. This seems plausible at a superficial level. The idea here is that the cost of the home is stretched out over a longer period of time, and therefore the monthly payment will be lower than it would be for a 30-year mortgage. … Unfortunately, the President’s scheme is unlikely to make homeownership more secure or affordable for ordinary Americans. It will further financialize the economy, enable more fiat-money fueled debt, and likely require more monetary inflation and more corporate bailouts down the line. That is, a fifty-year mortgage will require even more government intervention to guarantee loans and to keep interest rates at a politically acceptable level.” (11/12/25)