On The Market

Trump Floats 50-Year Mortgages: Cash Flow Boost or Affordability Illusion?

18 snips
Nov 13, 2025
The podcast dives into President Trump's proposal for 50-year mortgages, exploring its potential impact on the housing market. It compares 30-year and 50-year mortgage returns, highlighting notable cash flow differences for rental property investors. Concerns about long-term interest rates and slower equity buildup are discussed. Listeners also learn about legal hurdles to implementing these loans. Ultimately, the host shares his hesitation about using such a mortgage, underscoring the complexity of affordability and investment strategies.
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INSIGHT

Longer Loans Could Boost Short-Term Demand

  • A 50-year mortgage would lower monthly payments and expand qualifying buyers by easing debt-to-income constraints.
  • Dave Meyer warns this is a major departure from the U.S. norm of 30-year fixed mortgages and could reshape demand.
INSIGHT

US Fixed-Rate Culture Stabilizes Housing

  • The U.S. is unique for widespread 30-year fixed mortgages; 92% of mortgages are fixed rate.
  • That fixed-rate stability underpins residential investing and reduces systemic risk, Dave argues.
INSIGHT

Amortization Is A Real Investment Return

  • On a $430K median home at 6.5% with 20% down, a 30-year payment is about $2,175 monthly.
  • Dave Meyer shows amortization gives a real ROI: ~$3,850 principal paid year one, ~4.4% amortization return.
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