Trump Defends 50-Year Mortgage Plan as ‘Not a Big Deal’ After Furious Backlash From MAGA Base

President Donald Trump has shrugged off criticism from fellow conservatives over his proposed 50-year mortgage, saying "all it means is you pay less per month."

After Trump floated the idea over the weekend as a solution to the affordability crisis, it drew furious backlash even from his supporters, who pointed out that the small reduction in monthly payments would come with a massive increase in total interest paid over the life of the loan.

In an interview on Monday night, Fox News host Laura Ingraham questioned Trump about the 50-year mortgage proposal, telling the president it had "enraged your MAGA friends."

"A significant MAGA backlash, calling it a giveaway to the banks and simply prolonging the time it would take for Americans to own a home outright. Is that really a good idea?” asked Ingraham.

“It’s not even a big deal,” Trump replied. “I mean, you know, you go from 40 to 50 years.”

Ingraham interjected, noting that the standard mortgage term is 30 years. (Longer terms for fixed-rate mortgages are currently prohibited under federal rules for Qualified Mortgages.)

"You pay something less, from 30, some people had a 40, now they have a 50," Trump continued. "All it means is you pay less per month, you pay it over a longer period of time. It’s not like a big factor. It might help a little bit, but the problem was that Biden did this. He increased the interest rates."

Trump went on to blame Fed Chair Jerome Powell for keeping interest rates elevated. It's a familiar refrain from the president, who has called for drastic rate cuts at the central bank to boost the housing market and reduce government borrowing costs.

"But we’re gonna get interest rates down," added Trump. "But even with interest rates up, the economy is the strongest it’s ever been."

Backlash over 50-year mortgage plan

Trump's proposal for the 50-year mortgage comes as the administration grapples with solutions to the housing affordability crisis, which top officials in the administration say will be a major focus over the coming year.

Recent data showed that the typical age of first-time homebuyers hit an all-time high of 40 this year, up from 33 just five years ago, as soaring costs push many young families out of the market to buy a home.

However, the suggestion of a 50-year mortgage, an idea championed by Trump's top mortgage regulator Bill Pulte, was met with backlash even among Trump's staunch supporters.

"I don’t like 50-year mortgages as the solution to the housing affordability crisis," said Rep. Marjorie Taylor Greene, a Georgia Republican. "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."

Conservative commentator Matt Walsh also slammed the proposal, saying: “This just means your house will be owned by the bank until you die, and after. We don't need 50-year mortgages."

Housing economists are also skeptical of the plan, pointing out that total interest payments on a home would be nearly double or more on a 50-year mortgage, with homeowners building equity at a painfully slow pace.

"This is not the best way to solve housing affordability," says Realtor.com® Senior Economist Joel Berner.

Although monthly payments for a 50-year loan might be marginally lower, total interest paid would be much higher. Total principal and interest payments on a $400,000 home would rise to more than $1.1 million under a 50-year mortgage, assuming 10% down and a 6.25% rate.

Berner also notes that interest rates would necessarily be higher for 50-year loans, as lenders demand a term premium that increases with the length of debt.

It's unclear just how much higher 50-year rates would be, but if they were 1 percentage point higher than for 30-year loans, there would be no savings on the monthly payments, making the longer repayment period financial suicide.

As well, the economist warns that if 50-year mortgages do increase homebuyer purchasing power as intended, they may well simply drive home prices higher as sellers demand the maximum price that buyers can afford.

"The 'savings' from 50-year mortgages may be totally negated by rising home prices," says Berner.

National Association of Realtors® Chief Economist Lawrence Yun also expressed concerns about the "significant trade-offs" that come with a 50-year mortgage.

"The slow equity build would make trading up or down very difficult," he says. "It would also take almost 40 years to pay off half the balance, meaning most borrowers would not begin building meaningful equity until the final decade."