Changing Dynamics: The Push for a 50-Year Mortgage

On recent Sundays at open houses from north Bismarck to Mandan, buyers can be overheard running the same math: how to make monthly payments work without sacrificing savings for daycare, student loans, or a snowblower. Into that anxiety, former President Donald Trump has floated the idea of 50-year mortgages to bring down monthly payments for first-time buyers, a concept he raised on the 2024 campaign trail, according to contemporaneous media coverage of his remarks (e.g., Business Insider reporting in August 2024).

The pitch comes as affordability has been stretched by elevated prices and financing costs. Homeownership cost burdens hit modern highs in 2023–2024, according to the Harvard Joint Center for Housing Studies’ State of the Nation’s Housing report, which documents a sharp affordability squeeze nationally Harvard JCHS.

Longer mortgage terms are not entirely new to U.S. policy. Federal agencies allow extended terms in limited cases—USDA’s direct loans can stretch to 38 years for very-low-income borrowers, and FHA adopted a 40-year modification to help distressed homeowners avoid foreclosure, per the U.S. Department of Agriculture and the U.S. Department of Housing and Urban Development USDA, HUD. But a 50-year purchase mortgage would represent a significant shift for the mainstream market.

The Mechanics of a 50-Year Mortgage

The core trade-off is simple: a longer term lowers the monthly payment but greatly increases total interest and slows how quickly you build equity. Consider a standard, fully amortizing fixed-rate loan. If the interest rate and loan amount are the same, extending from 30 to 50 years spreads principal repayment over 600 months instead of 360.

By the numbers (illustrative only): On a $300,000 loan at a fixed 6.5% rate, the monthly principal-and-interest payment would be about $1,895 over 30 years, versus roughly $1,687 over 50 years—about $208 less each month. Over the full term, though, total interest rises from about $382,000 (30-year) to about $712,000 (50-year). These examples exclude taxes, insurance, and mortgage insurance.

Equity accrual also slows markedly. After five years of on-time payments at 6.5%, a borrower on a 30-year schedule would have paid down roughly $19,000 of principal on a $300,000 loan; on a 50-year schedule, principal reduction would be closer to $5,000. In practice, that means less flexibility to sell or refinance without bringing cash to closing if home prices dip in the near term. For a quick self-check, the Consumer Financial Protection Bureau’s tools can help you model different terms and rates CFPB.

Local Realities: Bismarck’s Housing Market

In Bismarck-Mandan, most purchase loans are still 30-year fixed mortgages offered through banks, credit unions, and state-backed programs, according to guidance from the North Dakota Housing Finance Agency (NDHFA), which currently finances 30-year terms for its FirstHome products NDHFA. That standardization makes budgeting straightforward for buyers, even as the monthly payments have climbed in recent years with higher borrowing costs, as tracked nationally by Freddie Mac’s Primary Mortgage Market Survey Freddie Mac PMMS.

A 50-year option could lower monthly payments enough to help some first-time buyers meet debt-to-income thresholds or leave room in the budget for rising insurance and property taxes. For example, that roughly $200 monthly reduction on a $300,000 loan could cover a utility bill, a car payment, or part of childcare. But the trade-off is meaningful for families planning to move again within 5–10 years—slower principal paydown means less equity available for the next down payment.

Local lenders also operate within investor and regulatory frameworks, which matter for availability and pricing. If Fannie Mae or Freddie Mac do not buy 50-year loans, local banks may only offer them as “portfolio” or non-qualified mortgages, which can carry higher rates and stricter underwriting. NDHFA and other affordable-lending programs would also need explicit authority to back longer terms before they reached most Bismarck borrowers CFPB ATR/QM rule.

Diverse Perspectives and Concerns

Supporters argue longer terms are a practical lever when incomes lag home prices. They say stretching amortization can help teachers, nurses, and young professionals buy near work, while freeing up monthly cash for savings or emergencies. Some industry analysts have also noted that Japan and parts of Europe have experimented with ultra-long mortgages in tight markets, illustrating how term length can be a policy variable in affordability debates.

Skeptics point out the math rarely favors consumers over the long haul. The CFPB’s ability-to-repay and qualified mortgage framework caps QM loans at 30 years today; beyond that threshold, loans generally receive fewer legal protections and may cost more to compensate lenders for added risk CFPB. Housing researchers also warn that very slow equity buildup can trap households if prices flatten or fall, raising the risk of being “underwater” after a job change or family move, according to the Harvard Joint Center for Housing Studies Harvard JCHS.

Local real estate leaders stress the importance of matching the loan to the life plan. For Bismarck buyers expecting to relocate within a decade, the higher total cost and slower equity of a 50-year loan could outweigh the monthly savings. For those intending to stay long-term and prioritizing monthly cash flow—especially first-time buyers using down payment assistance—an extended term might be one tool among many, but they recommend running scenarios with a trusted lender and a HUD-approved housing counselor HUD counselor finder.

Future Implications: What’s Next for Homebuyers?

Broad adoption of 50-year mortgages would require several policy shifts. Fannie Mae and Freddie Mac would need to add 50-year terms to their purchase criteria or pilot programs; FHA, VA, and USDA would have to authorize longer terms for purchase loans (today, FHA and VA limit new originations to 30 years, and USDA direct can go to 38 years in specific cases), and the CFPB would need to consider whether to adjust the Qualified Mortgage rule’s 30-year cap HUD, USDA, CFPB.

If those guardrails change, local lenders could price 50-year loans based on investor appetite and risk—likely at a modest rate premium to standard 30-year loans. For Bismarck families, that means the headline drop in monthly payment might be smaller than the simple math suggests once rate premiums and mortgage insurance are factored in. Buyers should also budget for taxes, insurance, HOA dues, and maintenance, which are unaffected by term length.

Quick guidance for Bismarck buyers

• Ask your lender for side-by-side Loan Estimates at two or three terms (30-, 40-, and 50-year if offered) and compare total interest paid over five, 10, and full term.

• If you expect to move within 7–10 years, model your projected equity under each term and include a 5–10% price dip scenario.

• Check NDHFA’s FirstHome and down payment assistance options; these may lower costs without extending your term NDHFA.

Resources

• ND Housing Finance Agency — program details and participating lenders: ndhfa.org

• CFPB mortgage tools — calculators and rate exploration: consumerfinance.gov/owning-a-home

• HUD-approved housing counselors in North Dakota: hud.gov/housing_counseling

• Bismarck-Mandan Board of REALTORS — market contacts and local listings: bmbor.org

What to Watch

• Policy signals from the CFPB and the Federal Housing Finance Agency (which oversees Fannie Mae and Freddie Mac) on whether longer-than-30-year terms will be considered for mainstream purchase loans. Any pilot or request for information would be an early tell.

• State-level moves: whether NDHFA explores statutory or program changes to back terms longer than 30 years. In the meantime, watch local lenders; any 50-year offerings would likely appear as niche, non-QM products first, with limited availability and rate premiums.