I don't consider Trump a dumb man but his 50 year mortgage idea is pure stupidity

[crosstin]

And it's not going to make homes more affordable. If anything it will offer poor dumb people a way to hand even more of their money over to rich people, and bring up prices of homes in the short run. On a $500k loan if you figure the interest rate will be .5 to .75% higher than a 30 year, you'll only be saving around $300 a month while taking almost twice as long to pay off and hardly chipping away at the principle the first 25-30 years

In order to make homes cheaper you are going to have to go after mom and pop investors in rental property who contrary to popular belief own the vast majority of single family homes for rent, not corporations like Blackrock who represent a tiny fraction of single family home investment property. Lowering interest rates will just bring property values up again and increase inflation. Briefly lowering capital gains tax will loosen up inventory and bring down home prices in the short term if your goal is to make homes more affordable

But a 50 year mortgage is just crazy talk

[Real Men Wear Green]

Trump didn't think of this he's just the salesman. He isn't sitting at a computer working out compound interest math problems to figure out how a garbage man can buy a house.

offer poor dumb people a way to hand even more of their money over to rich people

isn't an unfortunate side-effect, it would be the point.

[highwhey]

[Axe]

That's even more disturbing when you consider the fact that he may only have a few years left to live due to his old age.

[bladefd]

Moron has no idea what he is saying... "50 YAY!! BIGGER NUMBER THAN FDR!!!"

Savvy businessman, my ass. He doesn't understand finance 101.

If someone took a 50yr loan at 30, they would likely be dead before they finished paying off the loan lol. What happens then? The bank takes over the house? Do NOT take out a 50yr loan. Ever. You're better off renting if you don't have enough income for a 30yr loan. Even 30yr loans aren't great tbh.

[Off the Court]

You know it's a horrible idea when the elite Trump cucks of this forum aren't even defending it.

[Yes or No]

There are multiple factors at play but the root issue of housing affordability is currency devaluation. Wages do increase alongside said currency devaluation but they seldom keep up. Demand for hard assets outpaces new inventory thus driving the prices up more and more.

I am not a fan of big government but the best result might come from limiting the number of homes someone can own when it's not their primary residence. I am unsure.

[Off the Court]

There are multiple factors at play but the root issue of housing affordability is currency devaluation. Wages do increase alongside said currency devaluation but they seldom keep up. Demand for hard assets outpaces new inventory thus driving the prices up more and more.

I am not a fan of big government but the best result might come from limiting the number of homes someone can own when it's not their primary residence. I am unsure.

It's inflation coupled with the boom of work-at-home. People no longer need to move (sell their home). So the supply of available homes is low because a large percentage of the working population simply do not need to move any more.

[Hey Yo]

So Americans will soon have no choice? It's do the 50yr or no loan for you??

Where are you guys seeing that?

[ShawkFactory]

So Americans will soon have no choice? It's do the 50yr or no loan for you??

Where are you guys seeing that?

This isn't the issue anyone is taking. While this potentially addresses more lower income people being able to afford housing on a month-to-month basis, it doesn't at all address the actual issue: housing prices themselves. More people in the market with less monthly burden could actually exacerbate this problem.

[Hey Yo]

This isn't the issue anyone is taking. While this potentially addresses more lower income people being able to afford housing on a month-to-month basis, it doesn't at all address the actual issue: housing prices themselves. More people in the market with less monthly burden could actually exacerbate this problem.

The reactions in this thread read as if there will be no choice.

It's the same faux outrage that most provide with a lot of things that revolve around Trump. Nobody's claiming it's a great, stop end plan. Hell, it's something that was merely suggested... not even close to becoming a thing. It may never come to fruition and people would've been getting their balls in an uproar over nothing.

SSDD

[crosstin]

I am not a fan of big government but the best result might come from limiting the number of homes someone can own when it's not their primary residence. I am unsure.

You're absolutely right. Younger people have given up dreaming of owning a home because they simply aren't affordable any more, compared to renting. It used to be the opposite. Renting was cheaper, or at worst, about the same as renting. Then again the average age of a single family home purchaser was 37 in 2000. In 2025 it's 56. That's nuts considering 25 years isn't a long time for such a rapid transition to take place.

Owning multiple single family homes is now a huge thing. Some of these people rely on it as a primary source of income. But to most it's just investment and passive income to those that are already mostly financially set. And it's not the big corporations buying up most of these homes even though that's what make headlines. Corporations own less than 2.5% of SFHs, the rest of the 27% investor owned single family homes in America are just regular people. Corporations are also selling more homes than they are buying right now too so they aren't biggest problem.

If the government wanted to make homes more affordable they'd add special taxes(slowly over a great span of time)to people who own more than 2 homes and rent them out. If they offered brief capital gains tax relief that would also shake loose a bunch of inventory, especially from those locked in with super low interest rates. That alone would have an immediate and huge impact on home affordability. But it goes against the free market and would infuriate hundreds of thousands of mom and pop investors. It's also uncertain how big of an impact millions of people losing equity in their homes would affect the economy.

Or maybe the best solution is to just sit and wait for home affordability goes through an organic correction. Boomers hold most of the private real estate in America and they will start to die off in droves within 5-10 years. Maybe that alone will help home affordability.

[Off the Court]

Yes when most American Home owners are ready for an upgrade, they no longer want to sell their starter home, they want to keep it and rent it out. And I do not blame them, you own the value of the home itself that will always rise in the long term (maybe not short term) and then constant passive income. There is real work involved there though.

Also when some are looking to upgrade their home, they now hand their starter home off to their children instead of putting it on the market.



The one thing that can (and will) alleviate it all is the large rise in new homes and apartments being built. The supply will eventually catch up.

[ZenMaster]

Terrible suggestion to just keep the ponzi going, I hope no one ever takes a 50 year loan.

Fixing housing prices has become close to impossible in many western countries, it's very unfortunate.

[ShawkFactory]

The reactions in this thread read as if there will be no choice.

It's the same faux outrage that most provide with a lot of things that revolve around Trump. Nobody's claiming it's a great, stop end plan. Hell, it's something that was merely suggested... not even close to becoming a thing. It may never come to fruition and people would've been getting their balls in an uproar over nothing.

SSDD

HE posited this idea on Twitter putting himself next to FDR by coming up with this plan. No, it probably won't happen, but he put it out there and so scrutinizing accordingly is completely fair game.