Jun 6, 2026
Despite a worsening home affordability crisis in the U.S., Americans still want to own a home. And they aren’t shy about exhausting all potential options to achieve the milestone.
That includes taking on a 50-year mortgage that President Donald Trump proposed in November 2025, according to a new TD Bank survey. The study found that 74% of Americans surveyed would consider a 50-year mortgage if the option was made available to them.
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Most mortgages in the U.S. span 30 years and are chosen by a majority of borrowers because it makes monthly payments more affordable. Terms for 10 to 25 year mortgages also exist. Although, they come with higher payments that some families cannot afford as a fixed monthly cost.
At the time of writing, the 50-year mortgage is not an option borrowers can sign up for. But according to an X post by the U.S. Director of Federal Housing Bill Pulte, following Trump’s announcement on Truth Social, it’s being worked on and is being touted as “a complete game changer.”
Trump’s idea for a 50-year mortgage has drawn criticism from financial experts. For one, the interest paid over the loan term would be substantially higher than existing loan terms, even if the monthly mortgage payment decreases.
Banks would also be asked to take on greater risk because the span of the loan would be much longer.
On-time payments would take priority with a 50-year mortgage
If the 50-year mortgage becomes a reality, homeowners’ focus wouldn’t be on paying off the loan, experts tell Moneywise. Instead, it would be on making monthly payments in exchange for achieving part of the American Dream.
“Most buyers don’t wake up hoping to finance a home for half a century,” Darren Tooley, senior loan officer at Cornerstone Financial Services, tells Moneywise. “They really seek a payment that they can comfortably afford. Home prices have risen faster than most incomes, and mortgage rates remain elevated, so buyers are looking to alternative options.”
Tooley says it’s also a mistake to fixate on the total interest a borrower would pay over a 50-year period. Though it would be higher than a conventional loan, historically, most homeowners don’t keep the same mortgage for that long — usually five to seven years — before they sell the home or refinance their mortgage for a lower rate.
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“The more important consideration is how slowly the loan amortizes,” he adds.
With a 50-year mortgage, the overall balance owed to your lender would decline very little in the early years of the loan, especially compared to existing financing options.
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When a 50-year mortgage could make sense
A 50-year mortgage should generally be viewed as a payment-management tool rather than an affordability solution, experts say. But under the right circumstances, it can make sense. Afterall, it enables more people to become homeowners, rather than sit on the sidelines.
If the alternative to homeownership is renting forever in markets where rents are rising and renters may get priced out, a 50-year mortgage may be the “less-bad option,” according to Bobbi Rebell, certified financial planner and consumer finance expert at Badcredit.org.
“Potential home owners likely feel boxed into a corner,” she tells Moneywise. “This becomes a lever they can pull.”
Another scenario where a 50-year mortgage could make sense: If someone expects their income to significantly increase over time. In theory, this means they could aggressively pay down the mortgage sooner.
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You could also buy a home in a high-appreciation market if your plan to sell well before the 50-year loan is up, Eric Croak, CFP and accredited wealth-management advisor, says. If that’s the case, “you essentially need to treat the home as a very expensive rental and hope the market appreciates enough to cover your mortgage costs.”
“For most borrowers, there is literally no situation where stretching payments out half a century is advisable,” Croak adds.
401(K)s are another option to fund homeownership
The same TD Bank survey also found that roughly three quarters of younger millennials and Gen Z respondents would likely use their 401(K) retirement accounts to help purchase their first home.
Typically, you would pay a 10% withdrawal fee for taking out earnings from your 401(K) retirement plan, plus income taxes. But there are ways to access your money early, such as taking out a loan against your vested balance and paying yourself back typically within five years with interest.
“For many people, buying a home and saving for retirement are competing priorities,” says Sam Myers, account executive at SFA Wealth Management, a financial services firm that helps people forge retirement strategies. “The challenge is that retirement contributions made in your 20s and 30s often have decades to compound, making them some of the most valuable dollars you’ll ever invest.”
Some first-time homebuyers have paused contributing to retirement altogether. Nearly one-third of first-time homebuyers surveyed by TD Bank said they have reduced or stopped contributing to retirement accounts in order to save for a home. While homeownership can be a valuable part of building wealth, it ideally should complement your retirement strategy rather than replace it, Myers says.
“There may be situations where temporarily redirecting some savings toward a down payment makes sense,” he explains. “The key is having a plan to restart those retirement contributions as soon as possible.”
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Danni Santana is a journalist based out of New York City with a decade of experience reporting and editing business stories about retail, restaurants, sports, and personal finance.
