Trump Proposes 50-Year Mortgage | What It Means for Denver Homebuyers

Trump Floats 50-Year Mortgages: Can It Fix Affordability—or Just Stretch It?

In a headline-grabbing move this week, President Trump proposed introducing 50-year mortgages to make homeownership more affordable. The goal: reduce monthly payments and help more buyers qualify in today’s high-cost market.

But there’s a catch — current law caps standard home loans at 30 years. The Dodd-Frank Act, created after the 2008 financial crisis, bans longer loan terms under its Qualified Mortgage rule. That means any move to 50-year mortgages would require new legislation or non-traditional loan programs.

💡 What It Could Mean for Buyers

Using Fannie Mae’s calculator at 6.575% and 20% down:

Home Price 30-Year 40-Year 50-Year

Lower payments could help more buyers enter the market—especially in Denver Metro, where affordability remains one of the top challenges. But longer loans mean slower equity growth and higher total interest costs over time.

⚖️ The Catch: Slower Equity, Legal Hurdles

Critics warn that ultra-long loans could artificially inflate demand instead of fixing affordability.

“Subsidizing more demand through 50-year mortgages prevents the market from healing. The 30-year fixed is perfectly fine as is,” notes housing analyst Logan Mohtashami.

And because 50-year mortgages aren’t legal under current Qualified Mortgage rules, lenders would likely only offer them as non-QM loans—which often come with higher rates and stricter terms.

🏡 Our Take for Denver Buyers

If 50-year mortgages ever hit the market, they might lighten monthly payments—but they won’t make homes cheaper.
For now, Denver buyers should focus on:

• Watching interest rate trends and incentive programs

• Leveraging down payment assistance

• Staying within a sustainable long-term payment plan

Affordability in Denver won’t come from stretching the calendar—it’ll come from more housing supply and steady price growth.