The Trump Administration has suggested that the majority of the American population be in debt for the majority of their life, but by creating a 50-year home mortgage. Federal Housing Finance Agency (FHFA) Director Bill Pulte confirmed this Saturday.
The Trump administration is currently “working on” a plan to introduce 50-year mortgage terms for homebuyers, which would ensure massive amounts of money flow to banks in the form of interest. The only loser with a 50-year mortgage is the one naive enough to agree to those terms.
This idea is being attributed to ruler Donald Trump. “Thanks to President Trump, we are indeed working on The 50 year Mortgage – a complete game changer,” Pulte wrote in a statement on the social platform X.
Trump has also said he will work on a $2000 “tariff dividend” for every American, except those with “high incomes.” It has yet to be confirmed what Trump will consider to be a high income.
According to a report by The Hill, Pulte’s post followed a Truth Social post by President Trump earlier in the day, where he shared a graphic juxtaposing an image of him next to one of former President Franklin D. Roosevelt. The administration that oversaw the New Deal established the 30-year mortgage standard to help citizens recover from the Great Depression. Roosevelt’s introduction of the 30-year mortgage already sealed the debt destiny for most Americans to be in debt for most of their lives, and he was far from a hero, instituting other tyrannical policies along the way.
Right now, the problem is the horrific monetary polices of monetary creation and tariffs, fueling inflation and losses of income and purchasing power. So to fix it, the slave class gets handed 50-year mortgages. The interest paid before the home is paid off (if it ever is) would be insurmountable.
Compounding the unaffordability problem is that homeowners with super-low interest rates from a few years back are essentially locked into their homes, afraid to sell and buy something else because their new monthly payments would be astronomical. This “lock-in effect” has choked off the supply of homes for sale, pushing prices even higher, according to the website Norada Real Estate Investments.
The plan is reportedly to leverage government-sponsored enterprises like Fannie Mae and Freddie Mac to offer these longer-term loans. However, there’s a problem with the proposal. After the 2008 financial crisis and housing crash, the Dodd-Frank Act, a piece of legislation, was passed, putting a 30-year cap on what’s considered a “qualified mortgage.” Forty-year mortgages currently exist, but they are non-qualified mortgages (non-QM loans).
While these loans offer some perks, they also come with drawbacks, much like the 50-year mortgage. While housing may become more affordable, it will most certainly ensure a person is indebted forever.