Ken McElroy Show

The Brutal Truth About Trump’s 50-Year Mortgage Proposal

Nov 11, 2025
The hosts delve into Trump's ambitious 50-year mortgage proposal, discussing how it could lower monthly payments and unlock trillions in home equity. They explore its possible impact on homebuyers, including younger buyers, and whether it might contribute to a housing bubble. The conversation also touches on the potential for increased consumer spending and the dynamics of the housing market, including how these loans might reverse the renter trend. Finally, they emphasize the necessity of adequate housing supply to avoid steep price increases.
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INSIGHT

Longer Terms Lower Monthly Costs

  • A 50-year mortgage mainly lowers monthly payments by spreading the same interest over a longer term.
  • Ken McElroy says this makes homeownership more affordable without increasing the interest rate paid on the balance.
ADVICE

Use Longer Terms To Move Laterally

  • Do consider using a 50-year mortgage to keep monthly payments similar when moving between homes.
  • Danille advises this could help sellers trade up without a large payment shock and unlock trapped equity.
INSIGHT

Trapped Home Equity Is Massive

  • The U.S. holds roughly $34 trillion in home equity which can act like an ‘‘ATM’’ when unlocked.
  • Ken notes a 50-year option could free that equity and boost consumer spending and GDP.
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