Younger buyers interested in 50-year mortgage, despite drawbacks

Even as the idea of a 50-year mortgage drew criticism from housing experts, lack of affordability under the status quo could be brewing support among younger aspiring homebuyers, according to one survey

Federal Housing Finance Agency Director Bill Pulte reportedly mentioned the idea to President Donald Trump last weekend — leading Trump to post about the idea on Truth Social. However, sources told CBS News this week that a 50-year mortgage plan hadn’t been vetted by senior Trump administration officials and wasn’t ready for release.

Leaders across mortgage and real estate were almost uniformly against the idea. While a 50-year loan may offer lower monthly payments, experts including HousingWire’s Logan Mohtashami warn that extending repayment over five decades increases total interest costs and could leave households carrying debt far later into life.

But younger buyers might still be interested.

Younger buyers more open to 50-year term

A new poll of 1,000 U.S. adults from Badcredit.org found that 45% would consider taking out a 50-year mortgage — with sharp divides by age, gender and political affiliation.

Millennials were the most open to a half-century loan, with 54% indicating they would consider one. Support declined with age, however, with only 29% of Baby Boomers saying the same.

Researchers said the trend may reflect economic realities of younger adults facing high housing costs and elevated student loan debt — making long-term financing more appealing.

Older respondents, many of whom purchased homes under different market conditions, were more likely to view extended terms as a long-term financial burden.

“In limited situations, a 50-year mortgage can benefit prospective homeowners,” said Erica Sandberg, consumer finance expert at BadCredit.org. “As the study found, millennials are most likely to gravitate toward them. As many in this cohort are raising families, homeownership is appealing, though incomes may not always support 30-year mortgage payments.

“But they must weigh the monthly savings against the long-term costs, and to refinancing or paying more when possible. It can also be a way to build credit. As the buyer establishes better scores, they can refinance at a lower rate.”

Survey findings come amid a cooling housing market marked by high interest rates and limited affordability.

The survey also found a partisan divide.

A 50-year mortgage plan drew support from 54% of Republican respondents. By comparison, 41% of Democrats and 41% of Independents said they would consider such a loan.

Gender differences emerge

Men showed significantly more interest in ultra-long mortgage terms than women. Fifty-two percent of male respondents said they would consider a 50-year mortgage — compared with 39% of women.

Researchers said previous studies have shown women are generally more risk-averse in major financial decisions and often carry higher levels of student loan debt, factors that may contribute to hesitancy toward longer repayment timelines.