Dave:
President Trump has floated the idea of a 50 year mortgage. This could reduce monthly mortgage payments by hundreds of dollars per month for the average homeowner or investor, but at the same time, it would nearly double the amount of interest you pay over the lifetime of the loan. So would you take on a 50 year mortgage today? I’m gonna help you understand everything you need to know about this proposed new loan product and give you my take on whether the 50 year mortgage could make sense for real estate investors. Hey everyone. Welcome to On the Market. I’m Dave Meyer. Thank you all so much for being here today. This past weekend on November 9th, president Trump posted on social media his support for a 50 year mortgage. The idea here is that a longer amortization period will decrease monthly payments, ease debt to income requirements, and thereby help more Americans get into the housing market.
This is not the first time a longer amortized mortgage has been floated. People have been talking about 40 year mortgages for a while, but it does seem that by vocalizing his support, president Trump is getting more serious. And Bill Pulte, who is the director of the FHFA, which oversees mortgage giants, Fannie Mae and Freddie Mac, he has actually said that those agencies are working on it. So as of now, the loads aren’t available, but it is already sparking some pretty heated debate online about whether this is a good idea in the first place. And as you can probably tell, what happens here will certainly have big impacts on the housing market, and it could impact overall affordability. It can impact buyer demand, cashflow potential, and more. So today we’re gonna talk about everything we know so far and what the potential implications are. We’ll talk about the pros and cons, what the supporters say, what the detractors say, and I’ll give you all my personal opinion on the topic as well.
Let’s get into it. First up a little background, what is a 50…