Why 50-Year Mortgages Are a Terrible Idea: A Wealth Manager's Warning on Trump's Latest Proposal

By Brian Rezny, Founder of Rezny Wealth Management

In a recent statement amid soaring housing costs, President Donald Trump floated the idea of 50-year mortgages as a way to make homeownership more affordable, calling it "no big deal." reuters.com

 The proposal aims to stretch out payments, potentially lowering monthly burdens for buyers struggling in today's market. abcnews.go.com While the intent to ease access to the American Dream is understandable, as a financial advisor who's seen generations build (and sometimes squander) wealth, I firmly believe this is a disastrous policy. Extending mortgages to half a century doesn't solve affordability—it traps families in a cycle of debt, funnels more money to big banks, and undermines the very financial independence that homeownership should foster.

When I was younger, my parents bought their first home with a straightforward mortgage they paid down steadily. Over time, that debt vanished, freeing up resources for investments, education, and retirement. Today, however, the U.S. has morphed into a debt-fueled society. Household debt hit a record $17.8 trillion in 2024, with mortgages comprising the lion's share. Cheap debt can be a tool, but lifelong indebtedness? It's counterproductive. Trump's 50-year plan would exacerbate this, turning homes from assets into anchors.

Experts echo these concerns: While monthly payments might drop—for instance, a 50-year loan could shave about $68 off the payment per $100,000 borrowed compared to a 30-year term at current rates—the total interest paid balloons dramatically. usatoday.com. Equity builds at a snail's pace, leaving homeowners vulnerable to market dips or life changes. And let's not forget the abuse factor: We've already seen rampant refinancing, where families cash out home equity for cars, vacations, or gadgets—behaviors that erode long-term wealth. cnbc.com.  A longer term invites more of the same, prioritizing short-term gratification over sustainable prosperity.

A 30-year mortgage strikes the right balance: long enough for manageability, short enough to encourage payoff and wealth accumulation. Investors and everyday Americans must wake up—too much debt isn't empowerment; it's a subtle form of servitude to financial institutions that profit from our prolonged pain.

Key Reasons to Reject 50-Year Mortgages

• Prolongs Debt Servitude: Stretches repayment over decades, keeping families tethered to lenders instead of building equity quickly.

• Skyrockets Lifetime Costs: More interest accrues over 50 years, padding banks' profits while eroding borrowers' net worth—potentially adding tens of thousands in extra payments.

• Slows Wealth Building: Delayed equity growth hampers investment portfolios, retirement savings, and generational transfers, contrasting with the debt-free stability of past eras.

• Encourages Abuse: Easier access to extended credit fuels reckless refinancing for non-essentials, deepening America's $17+ trillion debt trap.

• Ignores Root Issues: True affordability comes from wage growth and supply reforms, not gimmicks that mask problems.

  
  

In my view, policies like this distract from real solutions: Promote financial literacy, incentivize saving, and cap debt terms to foster discipline. Homeownership should be a launchpad to freedom, not a 50-year sentence.

At Rezny Wealth Management, we help clients break free from debt's grip—because true wealth isn't borrowed; it's earned and preserved.

Brian Rezny is the founder of Rezny Wealth Management, guiding families toward debt-smart, investment-focused futures. For personalized advice, visit reznywealth.com.(Sources: USA Today, CNBC, Reuters, ABC News – November 2025 reports on Trump's proposal.)

General informational content only. Not tax, legal, or investment advice. Consult a financial professional before making investment decisions. Conduct due diligence. All investments involve risk, including potential loss of principal.