Housing is one of the basic needs of life, as important as food, water and security. Over the decades, however, housing affordability has become increasingly out of reach for the average American. With the median home price in the United States hovering around $440,000 and the median household income around $80,000, it’s easy to see why homeownership has become more of a dream than a given.
Consider potential 50-year mortgages — an idea the Trump administration is reportedly exploring. The concept is simple: extend the repayment term, making monthly payments more affordable, and potentially pair it with a transferable mortgage so homeowners can transfer their mortgage to a new property when they move. Together, these innovations could bring housing security to millions of Americans.
Critics were quick to say extending the debt for more than half a century was reckless. But I believe it’s a smart step — recognizing that our lifespans, careers, and financial realities have changed. If implemented responsibly, the 50-year mortgage could become one of the most transformative housing tools in our lifetimes.
Housing security and family formation
For many Americans, housing security is the cornerstone of family formation. Understandably, couples want a stable home before having children. The last thing you want to happen, especially with a newborn, is to be forced out because the landlord wants to sell or raises the rent. This happens much more frequently than most people realize.
Once you have a baby, life becomes a blur of feedings every few hours, trips to the pediatrician, and emotional and physical recovery. It took several months for the mother to recover. Parents are running out of breath. The last thing you need during this fragile time is uncertainty about your living situation.
When you own your own home, this stress essentially disappears. You can focus on raising your kids instead of worrying about your next lease renewal. Housing security allows you to focus on what matters most: your family. Don’t underestimate this benefit.
The problem is that for an increasing number of Americans, homeownership isn’t until middle age. The National Association of Realtors reports that the median age of first-time homebuyers is now 40, a record high. This isn’t just a statistic; This reflects the fact that it has become more difficult to buy a home relative to income growth.
At the same time, our Life expectancy is approximately 80 years. We might live longer, but not by much. As a result, family formation is pushed back later and later, or is abandoned altogether. From a biological perspective, this trend has huge consequences.
If you wait until you’re 40 to buy your first home and start a family, your chances are slim. The chance of a woman conceiving naturally after the age of 40 is less than 1% per month. It’s like winning the mini lottery. It happens, but not often. The result? More couples are postponing or giving up on having children altogether.
Here’s why 50-year mortgages and transferable mortgages could be game-changers. Not only do they make housing more affordable, they promote family stability, economic participation and national regeneration. Without enough young families, we will face a demographic cliff that threatens long-term economic growth.
50-Year Mortgages Are Great—If You Don’t Take 50 Years
The strongest criticism of the 50-year mortgage is that it is seen as tying people into debt forever. If you apply for such a loan when you are 40, you will be 90 when you pay off the loan. Sounds grim, right? But this argument misses a key point: Almost no one keeps their mortgage for the full term.
Today, 90-95% of mortgages in the United States are 30-year fixed-rate loans. However, the median homeownership period is only about 12 years. Before the 2008 financial crisis, it was even shorter—about seven to eight years.
So why do we assume borrowers will actually hold on to a 50-year mortgage for 50 years? They won’t. Most people will sell, refinance, or upgrade long before that happens.
Think about it: If you divide the average 12-year homeownership period by 30, the “mortgage utilization ratio” is 40%. In other words, most people are using less than half the potential term of their mortgage. Applying the same interest rate to a 50-year mortgage, the average homeowner would actually hold on to that mortgage for about 20 years instead of half a century.
That’s why I’ve long encouraged people to consider Adjustable Rate Mortgage (ARM)such as 7/1 or 10/1 ARM. They are more consistent with real-world behavior. The 50-year mortgage extends this flexibility even further. this is a Optionsnot a sentence.
More choices, more freedom
The advantage of a 50-year mortgage is that it lowers your monthly payments, giving you more purchasing power and flexibility. For a young family or first-time home buyer, this can make a big difference. Ultimately, life is limited and we rent everything until we die, no matter what.
Imagine you are 32 years old, newly married, and want to start a family before you are 35. You save diligently, but without Bank of Mom and Dad, you simply can’t afford the monthly payment on a 30-year fixed mortgage. You consider waiting for house prices to fall by 20%.
Eight years later, you get what you hoped for—house prices fall. But now, one of you is out of a job, and fertility is no longer on your side. IVF treatment costs $28,000 per cycle, leaving you emotionally and financially stretched.
If 50-year mortgages existed earlier, you might be buying a home in your early 30s, locking in stability, and focusing on starting a family rather than timing the market. Time waits for no one, especially in biology.
A longer amortization period doesn’t mean you’re stuck. You can always pay additional principal or refinance when your income increases or interest rates decrease. The point is that you can better choose when to buy, rather than waiting indefinitely for affordability that may never return.
The 50-year mortgage is music to music for real estate investors
If you were a real estate investor, you would never fight the government—you would go along with what the government wants. The 50-year mortgage expands the pool of potential buyers, which naturally supports home prices.
Historically, housing policy has tended to favor ownership. The government knows that about 65% of Americans own homes, and these homeowners form a powerful voting bloc. That’s why federal policies — from mortgage interest deductions to capital gains exclusions — have always been designed to support homeowners.
Remember the financial crisis of 2008-2009? The government bailed out banks and homeowners. This sets a precedent: when push comes to shove, the government will step in to stabilize the housing market.
I remember Bank of America proactively lowering the fixed-rate mortgage rate on my vacation property from 5.75% to 4.25%—without any warning. Overnight my cash flow increased by $500. This is the power of policy coordination between lenders and governments.
Now, with the SALT cap increasing from $10,000 to $40,000 under the Big Beautiful Act, and talk of a portable mortgage system that allows you to take your rate with you when you move, the momentum is clearly pro-housing.
When the government says it wants more Americans to own homes, you don’t resist—you invest.
Portable mortgages: Unleash more freedom of movement
While the 50-year mortgage gets the most attention, Liquid Mortgage Probably a more revolutionary concept actually. About 70% of homeowners have mortgage rates below 5% and home sales are at their lowest level in three years, meaning people are putting their lives on hold.
Under a portable system, homeowners can transfer their existing mortgage (and interest rate) to a new property. Given that financial circumstances tend to change over time, they must still qualify and come up with any cash difference.
However, imagine locking in a 3.5% interest rate and taking it with you when you move. This innovation will solve the “golden handcuffs” problem that has frozen the real estate market since 2022.
Currently, millions of Americans are reluctant to move because they don’t want to lose their low fixed-rate mortgages. Transferable mortgages will free up inventory, facilitate liquidity and make housing markets more efficient – all without increasing default risk.
Combined with the 50-year option, the housing system becomes more responsive to real-world conditions. Young families can buy early. Retirees can downsize without penalty. Workers can move without financial stress.
Invest in trends, not against them
The key to long-term success as an investor is to work with policy and demographic trends, rather than against them.
If the government wants to make housing more affordable through longer mortgage terms and portability, then demand for housing will increase. When demand increases, prices will increase.
For homebuyers, the 50-year mortgage is a bridge to stability when used responsibly. For investors, this is a sign of lasting support for the housing market.
Having options is a great thing. A 50-year mortgage isn’t for everyone, and that’s okay. But for those who take advantage of it strategically, it could mean decades of housing security and greater flexibility to invest elsewhere.
Imagine if you could secure a home for your family for half a century while still having the liquidity to build wealth in stocks, businesses, or education. That’s not a burden. This is empowerment.
Passive Investing in U.S. Real Estate
Direct real estate ownership is not for everyone. Between rising insurance premiums, clogged toilets, and random HOA assessments, being a landlord can wear you down quickly. But if you still believe, like me, that real estate is one of the most reliable ways to build long-term wealth, there’s an easier, more passive way to combat this trend: Fund rises.
Fundrise lets you invest in a diversified portfolio of residential and commercial real estate projects nationwide without making a huge down payment or taking on lifetime mortgage debt. You get real assets managed by professionals while you sit back and enjoy the potential dividends and appreciation.
You don’t need to be a millionaire or an accredited investor. For as little as $10, you can have a stake in the US real estate market. The platform handles acquisition, renovation and tenant headaches for you.
If 50-year transferable mortgages become a reality, the housing market could experience a strong second wave of demand. More buyers means more liquidity — and potentially higher property values. Fundrise investors don’t need to sign a 600-month mortgage to benefit from the same macro tailwinds.
You can be the one who repays the loan for 50 years, or you can be the one who collects the rent and the appreciation during those 50 years. Check Fund rises Go here and start passively investing in America’s housing future.
About the author
Financial Samurai was founded by Sam Dogen in 2009 and has become one of the most trusted and widely read independent personal finance websites today. Each article is based on first-hand experience and in-depth financial analysis.
Sam has been a homeowner since 2003 and manages a diversified portfolio of rental properties, generating approximately $150,000 in semi-passive income annually. Through Financial Samurai, he shares practical insights on building wealth, achieving financial independence, and living life on your terms.
