"I do not like this idea, Payne said straightforwardly. He then walked Hemmer and co-host Dana Perino through a quick example, where he said a 4% interest rate on a 30-year loan would cost $2,300 month; he said that same house, stretched over a 50 year period, would cost $1,900 a month, which he said would look good in terms of short-term affordability."
"But by the time you finish paying this bad boy off, the 30-year, you pay $359,000, versus a 50 year, [you'd pay] almost $700,000, Payne said. Oh wow, Perino exclaimed. So it's just a gargantuan difference just to make people feel better, and that's not the way to do this, Payne continued."
"His analysis comes two days after Bill Pulte, the director of the Federal Housing Finance Agency, said the Trump administration was working on a 50-year mortgage. Pulte called it a complete game changer in a post on X. A number of conservative pundits and Republicans, including Rep. Marjorie Taylor Greene (R-GA), criticized the plan soon after."
A proposed 50-year mortgage would lower monthly payments but greatly increase the total amount paid over the loan. Example calculations at a 4% interest rate show a 30-year loan costing roughly $2,300 per month and about $359,000 total, while a 50-year term reduces monthly payments to about $1,900 but raises total payments to nearly $700,000. Federal Housing Finance Agency leadership announced work on a 50-year mortgage and called it transformative. Conservative commentators and some Republican lawmakers criticized the plan. Alternative uses of tariff revenue were suggested instead of extending loan terms.
Read at www.mediaite.com
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