In response to a severe housing affordability crisis driven by high mortgage rates and soaring home prices, the Trump administration and housing officials are exploring unconventional financing options to make homeownership more accessible. Proposals include extending mortgage terms to 50 years and reviving concepts like assumable and portable mortgages, which would allow borrowers to transfer low, below-market interest rates to new properties. However, housing economists warn that these creative solutions are largely short-term political fixes that fail to address the core issue: a national shortage of between one and five million homes. By potentially boosting buyer demand without increasing supply, such financing tools risk further inflating home prices, exacerbating the very crisis they aim to solve.
Among the most debated proposals is the 50-year mortgage, designed to lower monthly payments but at a significant long-term cost. While a half-century loan could reduce a typical monthly payment by about $200 compared to a 30-year loan, the total interest paid over the life of the loan could nearly double, from approximately $400,000 to $750,000. Critics argue this burdens buyers with prolonged debt, delays equity building, and may lead lenders to charge higher rates due to perceived risk. Similarly, the exploration of assumable and portable mortgages presents a mixed bag. Assumable mortgages, already available on many government-backed loans, allow buyers to take over a seller’s existing low-rate loan, saving on interest and some closing costs. However, buyers must still cover the down payment gap between the home’s price and the remaining loan balance, often requiring a second, higher-rate mortgage. Portable mortgages, which do not currently exist in the U.S., could disproportionately benefit existing homeowners with low rates, potentially widening the affordability gap for first-time buyers and stimulating price increases by empowering repeat buyers.
Beyond government proposals, the market has developed its own creative financing mechanisms, such as builder rate buy-downs and seller financing, each with distinct advantages and risks. Homebuilders frequently offer temporary mortgage rate buydowns to attract buyers without lowering listing prices, a practice that some analysts believe artificially inflates new home costs. Meanwhile, seller financing—where the seller acts as the lender—has evolved from a niche practice in low-income neighborhoods to a tool for higher-end properties, appealing to self-employed buyers or those with non-traditional income. While it can offer below-market rates and keep wealth within communities, it often functions as a risky bridge loan and has historically been criticized for exploiting vulnerable buyers with unfavorable terms. Ultimately, while these alternative approaches provide temporary relief for some, experts stress that sustainable affordability hinges on solving the fundamental housing supply shortage, not merely altering loan terms.
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Forrás: https://www.businessinsider.com/trump-risky-mortgage-options-costs-2025-11.