Patrick Boyle On Finance Trump’s 50-Year Mortgage Plan: What You MUST Know!
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Nov 16, 2025 Is Trump's 50-year mortgage plan a solution or a trap? The discussion reveals how these loans might not lower payments as expected, highlighting costly long-term implications. Historical lessons from Japan showcase the risks of ultra-long mortgages. Patrick dives into the complex interplay of housing supply, aging buyers, and the origins of the 30-year mortgage. He emphasizes that boosting credit access could inflate prices rather than enhance affordability, urging a focus on housing supply as the real key to solving the crisis.
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Longer Terms Change Loan Economics
- Stretching a mortgage term superficially reduces monthly payments but changes the economics behind pricing and risk.
- Patrick Boyle explains lenders, investors, and law would reprice longer loans, erasing many benefits.
30-Year Loan Was A Policy Choice
- The 30-year fixed mortgage emerged from crisis and government policy, not as a natural market norm.
- Patrick Boyle traces how government-backed liquidity and GSEs made long fixed-rate loans widespread.
Higher Rates Can Cancel Payment Cuts
- A 50-year mortgage at a higher rate could leave monthly payments unchanged or higher.
- Analysts expect 50-year rates to be 75–100 basis points above 30-year rates, wiping out claimed savings.